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Suppose that the one - year Canadian interest ( currency CAD ) rate is 3 % and the equivalent one - year South African interest

Suppose that the one

-

year Canadian interest

(

currency CAD

)

rate is

3 %

and the equivalent one

-

year South African interest rate is

13 % (

currency Rand

) .

According to covered interest parity, there is:

Group of answer choices

Forward discount on CAD

None of the above

Forward premium on CAD

Forward premium on Rand

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