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Business, 11.12.2019 21:31 ieshaking28

Suppose a canadian bond portfolio manager wishes to enhance his yield on canadian short-term bills. current one-year canadian t-bills yield 13%. the current spot rate is c$ 1.40/$. the one-year forward rate is c$ 1.50/$. the us one-year t-bill rate is 6%. what is the canadian t-bill rate implied by interest rate parity? what percentage yield could the portfolio manager obtain by exploiting the arbitrage opportunity? (show your calculations! )

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Suppose a canadian bond portfolio manager wishes to enhance his yield on canadian short-term bills....
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