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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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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
