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The Eastern Truck Company is expecting the following cash flows (see the following table) in a foreign currency. If the interest rate is 7 percent,

The Eastern Truck Company is expecting the following cash flows (see the following table) in a foreign currency. If the interest rate is 7 percent, estimate the consolidated exposure of the company at the sixth month. Assume a flat term structure (no change between rates for varying maturity) and annual compounding. Time Three Months Six Months Nine Months Cash flow (CAD millions) 3 4 5

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