Calculate dollar rates of return on a deposit in bank

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Q. Calculate dollar rates of return on a deposit 10,000 pounds in a London bank in a year when interest rate on pounds is 10 percent and dollar/pound exchange rate moves from 1.50 dollars per pound to 1.38 dollars per pound. What is interest rate a U.S. Bank needs to oer to attract capital owes from London?

Reference no: EM1369487

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