Assume that one-year interest rates are 4.92% in Australia and 5.55% in the euro zone. The spot

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Assume that one-year interest rates are 4.92% in Australia and 5.55% in the euro zone.

The spot rate between the euro and the dollar is €0.9672/A$. Assuming that interest parity holds, What should the €/$ exchange rate be one year from now?

Related Book For answer-question

Financial Management Theory and Practice

ISBN: 978-1305632295

15th edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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Posted Date: Mar 17, 2023 05:56 AM

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Assume that one-year interest rates are 4.92% in Australia and 5.55% in the euro zone. The spot

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Financial Management Theory and Practice

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