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You can purchase $5 million of 1-year Nigeria sovereign hard currency bonds to yield 7%, or 4% more 1-year US Treasury bonds. Nigerias local currency
You can purchase $5 million of 1-year Nigeria sovereign hard currency bonds to yield 7%, or 4% more 1-year US Treasury bonds. Nigerias local currency government bonds yield 9%. Current FX rate is 150 Nigerian Naira per 1 US Dollar. What is the theoretical (assuming same sovereign risk) Interest Rate Parity (IRP) future FX rate of Nigerian Naira to US Dollars for 1-year?
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