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Market observes the exchange rates as of today: = 0.95, = 0.86 Part 1 - Attempt 1/3 for 10 pts. What is the implied interest

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Market observes the "exchange rates" as of today: = 0.95, = 0.86 Part 1 - Attempt 1/3 for 10 pts. What is the implied interest rate between time t = 0 and t = 2? 4+ decimals Submit Part 2 - Attempt 1/3 for 10 pts. Now there is a project with three certain cashflows: CF = - $10MM CF = $5MM CF2 = $7MM What is NPVO? 1 3+ decimals Submit Attempt 1/3 for 10 pts. Part 3 How much is CF, worth at t = 2? 2+ decimals

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