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The yield on a 1-year bill in the United Kingdom is 5%, 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 5%, and the present exchange rate is 1 pound = US$2. If you expect the exchange rate to be 1 pound - US$1.98 a year from now, the return a U.S. investor can expect to earn by investing in U.K. bills is approximately OA. -5,4% B. 2.5% OC 3.15% 3.95% OD
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