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Question
The 1 year interest rate in the U.S. is 1%. The spot exchange rate for yen is 92.61 to the dollar. The 6 months forward rate is 92.57 to the dollar. These prices indicate that interest rates in Japan, on an annualized basis, are about:A) .08% lower.
B) .08% higher.
C) .04% higher.
D) .8% lower.
Answer
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Related questions
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A) The net present value.
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Q:
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The equivalent annual cost method is most appropriate in which of the following situations? In each case, assume that several mutually exclusive options are available.
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