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Question 6 (1 point) Covered Interest Arbitrage. Assume the following information: Spot rate of Mexican peso $.100 180-day forward rate of Mexican peso $0.097 180-day

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Question 6 (1 point) Covered Interest Arbitrage. Assume the following information: Spot rate of Mexican peso $.100 180-day forward rate of Mexican peso $0.097 180-day Mexican interest 0.06 rate I 180-day U.S. interest rate 0.060 Suppose an initial investment of 1,050,000 pesos. Given this information, Mexican Investors would generate a yield of ??? AR

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