Mathematics, 18.12.2019 06:31 WildfireintheHeart
Assume that interest rate parity holds. the u. s. five-year interest rate is 5% annualized, and the mexican five-year interest rate is 8% annualized. today's spot rate of the mexican peso is $.20. what is the approximate five-year forecast of the peso's spot rate if the five-year forward rate is used as a forecast?
Answers: 1
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Assume that interest rate parity holds. the u. s. five-year interest rate is 5% annualized, and the...
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