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Business, 30.06.2021 01:00 bartekpiglo

If interest rate parity holds between the US and a foreign country, transaction costs are zero, and the forward rate is an unbiased predictor of future spot rate, then the effective financing rate for a U. S company that borrows the foreign currency on a covered basis would be: Group of answer choices More than the foreign interest rate. Less than the foreign interest rate. Equal to the U. S. interest rate. Less than the U. S. interest rate. Equal to the foreign interest rate.

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