Assume the following information1-year interest rate on us, Ask an Expert

Finance

Assume the following information:

1-year interest rate on U.S. dollars = 11.9%

1-year interest rate on Singapore dollars = 9.1%

Spot rate of Singapore dollar = 0.46 USD/SGD

1-year forward premium on Singapore dollars = 3.25%

Given this information, how much profit can be made with covered interest arbitrage, by borrowing 1 million USD?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93042073

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