If the current exchange rate is 130pound the one-year, Ask an Expert

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If the current exchange rate is $1.30/£, the one-year forward exchange rate is $1.35/£, and the interest rate on British government bills is 5.20% per year, what risk-free dollar denominated return can be locked in by investing in the British bills? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Risk-free return _____ %

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Financial Management, Finance

Category:- Financial Management
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