The Interest Rate on a 1-Year Canadian Security Is 8

question 35

Multiple Choice

The interest rate on a 1-year Canadian security is 8%.The current exchange rate is C$ = US $0.78.The 1-year forward rate is C$ = US $0.76.The return (denominated in U.S.$) that a U.S.investor can earn by investing in the Canadian security is

• A)3.59%.
• B)4.00%.
• C)5.23%.
• D)8.46%.
• E)None of the options

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Definitions:

Network Theory

A field of study that focuses on the analysis of networks, understood as systems of interconnected elements or actors.

Symmetrical Ties

Relationships characterized by an equal distribution of power, resources, or obligations between the parties involved.

Distributed

In the context of computing and systems theory, refers to processes, information, or resources that are spread out across multiple locations or nodes in a network.

Emerson

Ralph Waldo Emerson, an American essayist, lecturer, philosopher, and poet who led the transcendentalist movement of the mid-19th century.