(Answered) A us investor is considering a risk-free british bill with

Finance

A U.S. investor is considering a risk-free British bill with an annual rate of 7%. The current exchange rate is $1.22 per pound.

What is the investor's rate of return in dollars if the dollar strengthens by 4 cents?
What is the investor's rate of return in dollars if the dollar weakens by 4 cents?

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