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The interest rate on a 1-year Canadian security is 10% current exchange rate is C$ = US 0.9 1-year forward rate is C$ = US

The interest rate on a 1-year Canadian security is 10%
current exchange rate is C$ = US 0.9
1-year forward rate is C$ = US 0.92
The return (denominated in U.S. $) that a U.S. investor can earn by investing in the Canadian security is

10.46%

11.28%

12.44%

13.87%

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