Solved: Investing in the british bills, Finance Basics

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Investing in the british bills

Question:

If the current exchange rate is $1.75/pound, the one-year forward exchange rate is $1.85/pound, and the interest rate on British government bills is 8% per year, what risk-free, dollar-denominated return can be locked in by investing in the British bills?

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Finance Basics: Investing in the british bills

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