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The Present Exchange Rate Is C $1 = US $0

question 41

Multiple Choice

The present exchange rate is C $1 = US $0.77.The 1-year future rate is C $1 = US $0.73.The yield on a 1-year U.S.bill is 4%.A yield of __________ on a 1-year Canadian bill will make investors indifferent between investing in the U.S.bill and the Canadian bill.


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