If the ife holds what is the expected percent change in the, Financial Management

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If the ife holds what is the expected percent change in the

Assume that U.S. and British investors require a real return of 2.3 %. The nominal U.S. interest rate is 13.6 %, and the nominal British interest rate is 8.5 %. The current spot exchange rate is 1.44 USD/GBP.

If the IFE holds, what is the expected percent change in the value of the British pound relative to the dollar, over the course of the year?

Enter answer in percents.

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