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 4ST
Textbook Problem

Assume that the Venezuelan one-year interest rate is 90 percent and the U.S. one-year interest rate is 6 percent. Determine the break-even value for the percentage change in Venezuela’s currency (the bolivar) that would cause the effective yield to be the same for a one-year deposit in Venezuela as for a one-year deposit in the United States.

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