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Which currency is more likely to have the highest interest rates (neglect the spread: assume that the magnitude of the price paid to cross the spread is very small)?

Which currency is more likely to have the highest interest rates (neglect the spread: assume that the magnitude of the price paid to cross the spread is very small)?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ee 464.

L Swap In 5,000,000 Swap out 5,000,000 Spot Ask 1.7750 1.7745 Swap ask 30 days Add 0.0047 0.0115 1.7797 O The US dollar O The British pound O Both currencies have the same interest rates O Both interest rates are equal to 0% O Both interest rates are equal to 3% 1.7630 $ 8,898,500.00 $ 8,815,000.00 Which currency is more likely to have the highest interest rates (neglect the spread: assume that the magnitude of the price paid to cross the spread is very small)?
Transcribed Image Text:L Swap In 5,000,000 Swap out 5,000,000 Spot Ask 1.7750 1.7745 Swap ask 30 days Add 0.0047 0.0115 1.7797 O The US dollar O The British pound O Both currencies have the same interest rates O Both interest rates are equal to 0% O Both interest rates are equal to 3% 1.7630 $ 8,898,500.00 $ 8,815,000.00 Which currency is more likely to have the highest interest rates (neglect the spread: assume that the magnitude of the price paid to cross the spread is very small)?
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