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1. You are considering an investment that has a nominal annual interest rate of 10.80 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is?

2. What is the present value of a $358 perpetuity discounted back to the present at 4.09 percent?

3. Would cultural differences be a major stumbling block for U.S. MNCs doing business in Mexico?

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