Ideal currency and the term impossible trinity

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Reference no: EM132059069

1. Pollo Inc.'s 5.97% bonds have a YTM of 11.16%. The estimated risk premium between the company's bonds and stocks is 4%. Pollo's cost of common equity, Re, is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.

2. Explain the following concept and terminologies

a) The attributes of an ideal currency and the term "impossible trinity" in connection with an ideal currency

b) The J-Curve effect

c) Eurocurrrency markets

d) Libor

Reference no: EM132059069

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