Question
Suppose the interest rate in the US is 3.99% and in the UK is 5.91%. The current spot rate of British pounds is $1.874; the
Suppose the interest rate in the US is 3.99% and in the UK is 5.91%. The current spot rate of British pounds is $1.874; the 16-day forward rate of the pound is $1.793. What is the equilibrium UK interest rate in percentage (keep 2 decimal)? SHOW WORK
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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
