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Assume That Interest Rates of Most Industrialized Countries Are Similar

question 28

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Assume that interest rates of most industrialized countries are similar to the U.S. interest rate. In the last few months, the currencies of all industrialized countries weakened substantially against the U.S. dollar. If non-U.S. firms based in these countries financed with U.S. dollars during this period (even when they had no receivables in dollars) , their effective financing rate would have been:

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