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What the market believes the krona will trade at

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Problem 1: A $2000 bill with a $25 coupon in the US is currently selling at $1800, and a 4000 Swedish Krona bill with a 200 Krona coupon is trading for 3500 Krona. Both mature in 1 year. The Krona is currently trading at US $.15. If uncovered interest parity holds, the market believes the Krona will trade at ____ US dollars in 1 years' time.

Reference no: EM132942291

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