How much profit can you earn on a loan of 5000 by utilizing


The spot rate between Canada and the U.S. is C$1.0625 = $1, while the 1-year forward rate is C$1.0451 = $1. The risk-free rate in Canada is 3.4 percent. The risk-free rate in the U.S. is 4.0 percent. How much profit can you earn on a loan of $5,000 by utilizing covered interest arbitrage?

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Financial Management: How much profit can you earn on a loan of 5000 by utilizing
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