Question
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.4050. The six month USD interest rate is
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.4050. The six month USD interest rate is 1.5% per annum continuously compounded. Estimate the six month euro interest rate. (Please round your answer to four decimal places)
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Principles Of Finance
Authors: Besley, Scott Besley, Eugene F Brigham, Brigham
4th Edition
0324655886, 9780324655889
