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Problem 15 Intro You have $19,000 to invest and observe the following interest rates and exchange rates: Loan rate Deposit rate 4.2% 4.9% 7.4% 8.3%

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Problem 15 Intro You have $19,000 to invest and observe the following interest rates and exchange rates: Loan rate Deposit rate 4.2% 4.9% 7.4% 8.3% Annual interest rates Dollar Ruble Exchange rates Ruble spot Ruble 1-year forward Bid Ask $0.011 $0.013 $0.012 $0.014 Part 1 - Attempt 1/6 for 10 pts. What is your risk-free rate of return (yield) from exploiting the higher interest rate in Russia? $+ decimals Submit

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