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Suppose that the spot rate of the Singapur dollar is $ 0.70. The one-year interest rate is 11% in the United States and 7% in
Suppose that the spot rate of the Singapur dollar is $ 0.70. The one-year interest rate is 11% in the United States and 7% in Singapore. What will be the spot rate in a year based on the Fisher International Effect? What is the force that causes the spot exchange rate to change according to the Fisher International Effect?
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Capital Budgeting
Authors: Pamela P. Peterson
1st Edition
0471218332, 9780471218333
