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Question 18. You are a Swedish investor and have identified an interesting investment alternative in the UK. There is aUK Government Bond yielding 1.43% per

Question 18. You are a Swedish investor and have identified an interesting investment alternative in the UK. There is aUK Government Bond yielding 1.43% per year in GBP. The current exchange rate is 12SEKper GBP. Your analysts estimate is that the GBP will increase in value towards the SEK and be worth 12.4SEK per GBPwithin a year. What is your expected 1-year return in SEK given these estimates? Return in %.

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