What is the investor rate of return in dollars

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A U.S. investor is considering a risk-free British bill with an annual rate of 7%. The current exchange rate is $1.22 per pound.

  1. What is the investor's rate of return in dollars if the dollar strengthens by 4 cents?
  2. What is the investor's rate of return in dollars if the dollar weakens by 4 cents?

Reference no: EM131950985

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