You want to invest $1,000,000,000 for one year. Assume the interest rate in the Australia is6% and

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You want to invest $1,000,000,000 for one year. Assume the interest rate in the Australia is6% and the interest rate in the United States is 1%. The current spot rate is AUD/$ 1.32 and the one-year forward rate is AUD/$ 1.3307. Would you prefer investing in Australia or in the UnitedStates? Why? Compute the proceeds of both strategies.

Posted Date: Jun 10, 2024 04:37 AM

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You want to invest $1,000,000,000 for one year. Assume the interest rate in the Australia is6% and

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