This test has a time limit of 1 hour. This test will save and submit automatically when the time expires, Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Multiple Attempts Not allowed. This test can only be taken once Force Completion This test can be saved and resumed at any point until time has expired. The timer will continue to run if you leave the test. This test does not allow backtracking. Changes to the answer after submission are prohibited Remaining Time: 50 minutes, 38 seconds. Question Completion Status: 11 50 6 7 8 9 10 11 | 12 13 L A Moving to the next question prevents changes to this answer. Question 5 Use the information for the question(s) below The current spot exchange rate. S is $1.8862/. Suppose that the yield curve in both countries is flat. The risk-free rate on dollars, rs, is 5.35% and the risk-free interest rate on pounds is 4.80%. Using the covered interest parity condition, the calculated one-year forward rate F1 is O $1.9161/8 O $1.87647 $1.8568/ O $1.8961/ A Moving to the next question prevents changes to this answer 0 U Moving to we next question prevents changes to this answer. Question 1 Use the information for the question(s) below. Consider the following tax rates: Capital Ordinary Dividend Year Gains Rate Income Rate Rate 1997-2000 20% 40% 40% 2001-2002 20% 39% 39% 2003- 15% 35% 15% *The current tax rates are set to expire in 2008 unless Congress extends them. The tax rates shown are for financial ass the same is true for dividends if the assets are held for less than 61 days. The effective dividend tax rate for a pension fund in 2006 is closest to: 20% 25% 15% O 0% A Moving to the next question prevents changes to this