Homework Assignment 6 - Leeds School of Business
The interest rate in the United States is 4% and the Euro is trading at 1 euro per dollar. The euro is expected to depreciate to 1.1 euros per dollar in one-years time. Calculate the interest rate in Europe. The correct formula to use is . 1 euro dollar × 1+ r euro 1+ r USD =1.1 euro dollar . r euro =1.1× 1.04 -1=14.4% . Chapter 15 ... ................
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