Suppose 6 months ago a Swiss investor bought a 6-month US. Treasury bill at a price of $9,708.74, with a maturity value of $10,000.00. The exchange rate at that time was 0.931 Swiss francs (CHF) per dollar. Today, at maturity, the exchange rate is 0.947 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor?

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ANSWER To solve this problem we need to calculate the rate of return for the Swiss investor taking i... View the full answer