Suppose the interest on Russian government bonds is 7.9%, and the current exchange rate is 26.1 rubles

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Suppose the interest on Russian government bonds is 7.9%, and the current exchange rate is 26.1 rubles per dollar. If the forward exchange rate is 26.6 rubles per dollar, and the current U.S. risk-free interest rate is 4.3%, what is the implied credit spread for Russian government bonds?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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