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One-Year Forward Exchange Rate Spot Exchange Rate Canadian dollar (U.S. dollar/Canadian dollar) 0.8798 0.8935 The current one year interest rate on U.S. Treasury securities is

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One-Year Forward Exchange Rate Spot Exchange Rate Canadian dollar (U.S. dollar/Canadian dollar) 0.8798 0.8935 The current one year interest rate on U.S. Treasury securities is 8.03%. If interest rate parity holds, what is the expected yield on one-year Canadian securities of equal risk? 6.05% 7.64% 6.37% 733% Which of the following statements is implied by Interest rate parity theory? O two countries have the same inition rate, they should have the same interest rate, too. An investment in one's home country should have the same return as similar investment in a foreign country, A product bought I one country should have the same price in other countries adjusted for exchange rate Interest rates all countries should be the same

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