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Suppose, Andrew (a U.S. investor) purchases a-20-day Euro-commercial paper with a par value of 1,000,000 Mexican pesos for a price of 998,000 Mexican pesos. If

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Suppose, Andrew (a U.S. investor) purchases a-20-day Euro-commercial paper with a par value of 1,000,000 Mexican pesos for a price of 998,000 Mexican pesos. If the peso is worth $0.049, the spot rate is anticipated to be $0.051940 per peso at the end of maturity, and Andritw holds the Eurpcommercial paper until then, assuming a 360 day year, the effective yield is: 8.95% 9.34% 9.8364 10.52%

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