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Suppose Susan (a U.S. investor) purchases a 20-day Euro-commercial paper with a par value of 10,000,000 Indian rupees for a price of 9,950,000 Indian rupees.

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Suppose Susan (a U.S. investor) purchases a 20-day Euro-commercial paper with a par value of 10,000,000 Indian rupees for a price of 9,950,000 Indian rupees. If the rupee is worth $0,02, the spot rote is anticipated to be $0.021800 per rupee at the end of maturity, and Susan holds the Eurocommercial poper unti then, assuming a 360 day year, the effective yeld is: 17.35% 16.48% 18. 06% 19.05%

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