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Suppose the interest on Russian government bonds is 7.2 % and the current exchange rate is 25.1 rubles per dollar. If the forward exchange rate
Suppose the interest on Russian government bonds is 7.2 % and the current exchange rate is 25.1 rubles per dollar. If the forward exchange rate is 25.6 rubles per? dollar, and the current U.S.? risk-free interest rate is 4.7%?, what is the implied credit spread for Russian government? bonds?
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