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Question 29 3 pts If the ratio of interest rates in two countries reflect the ratio between the forward and spot rate -- that is,
Question 29 3 pts If the ratio of interest rates in two countries reflect the ratio between the forward and spot rate -- that is, if interest rate parity exists -- then: A company should always hedge its foreign borrowing Financing in the foreign country will likely have the same cost as financing in the home country A company should avoid financing outside of its own country because it would be speculative Something is wrong in the company's analysis because its interest rates do not influence the relationship between forward and spot rates
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