Is the expected return from holding a us bond greater than


Suppose the US dollar currently sells at SF1.50, and the 90-day forward premium on the dollar is 5%. Calculate the 3-month SF/$ forward rate. What is the expected spot rate in 90 days if the risk premium is 0.03? Is the expected return from holding a US bond greater than or less than the expected return from holding a swiss bond?

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Financial Management: Is the expected return from holding a us bond greater than
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