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Suppose Kevin (a U.S. investor) purchases a 45-day Euro-commercial paper with a par value of 10,000,000 Brazilian reals for a price of 9,960,000 Brazilian reals.

Suppose Kevin (a U.S. investor) purchases a 45-day Euro-commercial paper with a par value of 10,000,000 Brazilian reals for a price of 9,960,000 Brazilian reals. If the real is worth $0.23, the spot rate is anticipated to be $0.248400 per real at the end of maturity, and Kevin holds the Euro-commercial paper until then, assuming a 360 day year, the effective yield is:

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