Question
Q12. If you had access to a $1,000,000 line of credit from your preferred borrowing country, over this 4-year period, your net profit from an
Q12. If you had access to a $1,000,000 line of credit from your preferred borrowing country, over this 4-year period, your net profit from an uncovered interest rate arbitrage would have been _________.
| Country | Year 1: Interest Rate | Year 2: Interest Rate | Year 3: Interest Rate | Year 4: Interest Rate | Year 1: Inflation Rate | Year 2: Inflation Rate | Year 3: Inflation Rate | Year 4: Inflation Rate | Year 1: % Change in IQ | Year 2: % Change in IQ | Year 3: % Change in IQ | Year 4: % Change in IQ |
| US | 1.15 | 1.56 | 3.51 | 5.15 | 1.99 | 2.75 | 3.22 | 3.07 | 0.00 | 0.00 | 0.00 | 0.00 |
| South Africa | 10.66 | 7.53 | 6.91 | 7.34 | 5.79 | 6.53 | 5.45 | 6.27 | -28.23 | -14.61 | -1.55 | 6.48 |
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
