Current exchange rate, Suppose that there is an asset

Current exchange rate

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Reference no: EM13937242

Suppose that there is an asset denominated in Chinese Yuans (Renminbi). Current exchange rate is 6 Renminbi per dollar.

A. Price a tree that delivers 60 Renminbi worth of fruit every year forever with an interest rate of 15% assuming the exchange rate does not change. (assume that the interest rate in US dollars is the one that would assure covered interest rate parity)

Reference no: EM13937242

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