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With explain the answer please F494 SUPPLEMENTAL PROBLEM 2 Suppose a US-based Multinational Corporation (MNC) can earn 2.5% on a marketable security and uses such

image text in transcribed With explain the answer please
F494 SUPPLEMENTAL PROBLEM 2 Suppose a US-based Multinational Corporation (MNC) can earn 2.5% on a marketable security and uses such investments to tie up excess cash until needed. The company is considering investing in securities denominated in Czech Koruna (CZK) as they pay a higher nominal return that US Dollar (USD) denominated securities. Expectations are that the Czech Koruna will depreciate against the USD by 4.5% during the next year. What is the minimum NOMINAL RETURN needed on CZK denominated securities to warrant investment

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