How much would it be worth in dollars one year from now

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Reference no: EM131389173

a) If I had a $1, one year U.S. bond today, how much would it be worth in dollars one year from now?

b) If I wanted to purchase one year U.K. bonds today, and all I had was $1, how much would they be worth, in dollars, one year from now?

c) Write down the Uncovered Interest Parity Condition (UIPC) and explain what arbitrage means in this context.

d) Further derive the UIPC into its approximate form.

Reference no: EM131389173

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