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Suppose that the current exchange rate is 0.89 euros per dollar, but you believe the dollar will decline to 0.81 euros per dollar. If a

Suppose that the current exchange rate is 0.89 euros per dollar, but you believe the dollar will decline to 0.81 euros per dollar. If a euro-denominated bond is yielding 2 percent, what return do you expect in U.S. dollars?

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