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Using the information below, what will be the spot rate of the Singapore dollar (USD/SGD) in three years based on the International Fisher Effect (=UIRP)?
Using the information below, what will be the spot rate of the Singapore dollar (USD/SGD) in three years based on the International Fisher Effect (=UIRP)? Show your work
| Spot exchange rate of the Singapore dollar (USD/SGD) | 0.70 |
| Three-year annualized interest rate in the US (i.e., annual rate expected each year over the following three years), in % | 4.46 |
| Three-year annualized interest rate in Singapore (%) | 1.81 |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
