Suppose the interest on Russian government bonds is 7.1%, and the current exchange rate is 27.7 rubles
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Suppose the interest on Russian government bonds is 7.1%, and the current exchange rate is 27.7 rubles per dollar. If the forward exchange rate is 28.2 rubles per dollar, and the current U.S. risk-free interest rate is 4.8%, what is the implied credit spread for Russian government bonds?
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The implied credit spread for Russian government bonds can be calculated using the uncovered ...View the full answer
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