The spot rate of the australian dollar is 62 the 1-year, Basic Statistics

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The spot rate of the australian dollar is 62 the 1-year

The spot rate of the Australian dollar is $.62. The 1-year forward rate of the Australian dollar is $.60. The Australian 1-year interest rate is 9 percent. Assume that the forward rate is used to forecast the future spot rate. Determine the expected effective financing rate for a U.S. firm that borrows Australian dollars to finance its U.S. business.

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Basic Statistics: The spot rate of the australian dollar is 62 the 1-year

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Basic Statistics: The spot rate of the australian dollar is 62 the 1-year

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