Question: How does the interest-rate parity condition account for differences in interest rates in different countries on similar bonds? The differences reflect expected changes in the

How does the interest-rate parity condition account for differences in interest

How does the interest-rate parity condition account for differences in interest rates in different countries on similar bonds? The differences reflect expected changes in the exchange rate. The differences expected changes m the bond's interest rate. The differences expected changes in-inflation. The differences unexpected changes in the bond's interest rate. What are the main reasons that interest-rate panty may not hold exactly? Exchange rate risk. Transaction costs

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