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Business, 05.05.2020 07:01 kassandramarie16

Assume the U. S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spot rate of the NZ$ is $.52, and the one-year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $.48. Based on this information, what is the effective financing rate for a U. S. firm that takes out a one-year, uncovered NZ$ loan?

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Assume the U. S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spo...
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