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The yield on a 1-year bill in the United Kingdom is 6, and the present exchange rate is 1 pound = US$2. If you expect
The yield on a 1-year bill in the United Kingdom is \6, and the present exchange rate is 1 pound = US\\$2. If you expect the exchange rate to be 1 pound = US\\$1.95 a year from now, the return a U.S. investor can expect to earn by investing in U.K. bills is approximately A. \3 B. \8.72 C. \3 The yield on a 1-year bill in the United Kingdom is \6, and the present exchange rate is 1 pound = US\\$2. If you expect the exchange rate to be 1 pound = US\\$1.95 a year from now, the return a U.S. investor can expect to earn by investing in U.K. bills is approximately A. \3 B. \8.72 C. \3
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