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Business, 27.12.2019 03:31 anaalashay

Assume the u. s. one-year interest rate is 8 percent, and the british one-year interest rate is 6 percent. the one-year forward rate of the pound is $1.97. the spot rate of the pound at the beginning of the year is $1.95. by the end of the year, the pound's spot rate is $2.05. based on the information, what is the effective financing rate for a u. s. firm that takes out a one-year, uncovered british loan? a. about 12.4 percentb. about 7.1 percentc. about 10.3 percentd. about 11.4 percent

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Assume the u. s. one-year interest rate is 8 percent, and the british one-year interest rate is 6 pe...

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