What is the effective yield of this security

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Reference no: EM132009623

your client has been offered money market SECURITY with par value 1000$ in one year in UK. the current price on market is 936 £. the current exchange rate (S0) is 1.50 $/£. You also know that one year from now the exchange rate will be at 1.36 $/£.

What is the effective yield of this security if your client holds the bound until maturity ? ( show work please )

Reference no: EM132009623

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