Question
The annual yield on government-issued bonds in Mexican Peso is 15%. The analyst say that Peso will depreciate by 10% in the following year. If
The annual yield on government-issued bonds in Mexican Peso is 15%. The analyst say that Peso will depreciate by 10% in the following year. If the Fisher Effect holds, what should be the yield on the one-year US T-Bills? Please write your answer with three decimal places? For instance, 1.2% is 0.012.
Ans is NOT 0.045
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
