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Required information The following information is used for the next three questions. The current market conditions in the U.S. and Sweden are summarized as follows.
Required information The following information is used for the next three questions. The current market conditions in the U.S. and Sweden are summarized as follows. Annual interest rates in the U.S. and Sweden are 3% and 1%, respectively. Current spot rate is USD 0.10= SEK 1.00 . SEK stands for Swedish krona. One-year forward rate is USD 0.12 = SEK 1.00. You are a Swedish investor who can borrow either USD 100,000 or SEK 1,000,000. As a result of the above ClA transactions, how will IRP be restored? Multiple Choice Interest rate in the U.S. will go up. Interest rate in Sweden will go down. Spot rate will go down. Forward rate wil go up. Irtretest rate in the US will go up Interesit rate in Swexden will gn dewn 5pot tate will go up Forwerd rafe will go down Interest rate in the U.S. will go down. Interest rate in Sweden will go up. Spot rate will go down. Forward rate will go up
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