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papahomer papahomer
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6 years ago
The 6 month interest rate in Australia is 0.6%. The spot exchange rate for Australian dollars is 1.4063 to the U.S.dollar. The 6 months forward rate is 1.4259 to the U.S. dollar. These prices indicate that the 6 month risk-free rate in the U.S. is
A) 6.00%.
B) 3.02%.
C) 3.42%.
D) 2.00%.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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LutionalLutional
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6 years ago
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4 years ago Edited: 4 years ago, Meredith Williams
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