Question
Recent changes in economic condition dictates that the nominal interest rate in the USA is going to rise to 4.75%. The spot rate is 0.80
Recent changes in economic condition dictates that the nominal interest rate in the USA is going to rise to 4.75%. The spot rate is 0.80 and the one-year forward quote is 0.7923. According to interest rate parity what must be the nominal interest rate in Canada to avoid arbitrage ?
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
