How does the interest-rate parity condition account for differences in interest rates on similar bonds in different

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How does the interest-rate parity condition account for differences in interest rates on similar bonds in different countries? What are the main reasons that interest-rate parity may not hold exactly?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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