FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 21, Problem 3ST
Textbook Problem

Assume that the one-year forward rate is used as the forecast of the future spot rate. The Malaysian ringgit’s spot rate is $0.20, and its one-year forward rate is $0.19. The Malaysian one-year interest rate is 11 percent. What is the expected effective yield on a one-year deposit in Malaysia made by a U.S. firm?

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