What is the effective annual interest rate of loan

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Question 1: Carry? Trade, Inc., borrows yen when the yen is trading at ?¥110?/US$. If the nominal annual interest rate of the loan is 3% and at the end of the year the yen trades at ?¥120?/US$, what is the effective annual interest rate of the? loan?

Reference no: EM132505468

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