The rise of globalization is due to the meny companics that have become multinational corporations for various reasons-for example, to access better technology, to enter new markots, to obtain more raw materials, to find funding resources, to minimize productlon costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. The reiationship between interest rates and exchange rates cen be represented through the concept of interest rate parity. Consider the following: Suppose you observe the following spot and forward exchange rates between the U.S. doller (\$) end the Canadian dollar (CS): The current one-year interest rate on U.S. Treasury secunties is 7.77%. If interest rete parity holds, what is the expected yield on one-year Canadian secunties of equal risk? 6,75% 4,99% 5.87% 6.16% The current one-year intercst rate on U.S. Treasury securities is 7.77%. If interest rate parity holds, what is the expected yield on one-year Canodian securities of equal risk? 6.75% 4.99% 5.87% 6.16% Interest rate perity recognizes that when you invest in a country other than your home country, two factors affect your investment-returns on the investment itseif and changes in the exchange rate. Which of the following would couse the overall return on your investment to be lower than the investment's stoted return? The currency in which the investment is denominated appreciates relative to your home currency. Your home currency appreciates retative to the currency in which the investment is denominated. Your home currency depreciates relative to the currency in which the investment is denominated