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The interest rate on a 1-year Canadian security is 12% current exchange rate is C$ = US 0.8 1-year forward rate is C$ = US
The interest rate on a 1-year Canadian security is | 12% | ||||
current exchange rate is C$ = US | 0.8 | ||||
1-year forward rate is C$ = US | 0.82 | ||||
The return (denominated in U.S. $) that a U.S. investor can earn by investing in the Canadian security is |
12.00% | ||
13.24% | ||
14.18% | ||
14.80% |
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