Question: If expected inflation in the US is 4%, expected inflation in france is 13%, and the one year risk free rate in the US is

If expected inflation in the US is 4%, expected inflation in france is 13%, and the one year risk free rate in the US is 2%, what would the one year risk free rate have to be in france for real interest rate parity to hold?

One approach for evaluating the investment project dominated on a foreign currency is to calculate the NPV in dollar twrms, assuming the firm hedges the projects cash flow using ______.

Suppose that the nominal risk free rate of return in the US is 8% and inflation is expected to be at 6%. In Australia the nominal interest rate is 16%. what is the expected rate of inflation in austrailia if the fisher effect holds?

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