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What is the effective dollar interest rate

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Question - You observe that the current USD/GBP spot rate is $1.31/GBP and the USD/GBP one year forward rate today is $1.43/GBP. You can invest in the US at 8% per annum or in the UK at 8% per annum. From the US perspective, what is the effective dollar interest rate from Investing in the UK from one year?

Reference no: EM133016182

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