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  • 13-02-2024
  • Business
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1. The interest rate on a 1-year Canadian bond is 4.5%. The current exchange rate is C
$1= US $0.75. The 1-year forward rate is C $1 = US $0.80. The return (denominated in
_%.
US$) that a U.S. investor can earn by investing in the Canadian security is
A) 11.4
B) 11.5
C) 11.6
D) 11.7

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