Suppose the 6-month risk-free rate of return in the united


Suppose the 6-month risk-free rate of return in the United States is 4%. The current exchange rate is 1 pound = US$1.70. The 6-month forward rate is 1 pound = US$1.50. The minimum yield on a 6-month risk-free security in Britain that would induce a U.S. investor to invest in the British security is ________.

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Financial Management: Suppose the 6-month risk-free rate of return in the united
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