3. Open Question: (/5) You have the opportunity to invest $100,000 for one year in...

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3. Open Question: (/5) You have the opportunity to invest $100,000 for one year in the U.S. at 4%. Ruritanian peso deposits are offering 35%. All other things being equal, the spot rate is RUP 30 per $1. The 1 year forward rate is RUP 40 per $1. Which bond will you prefer and why? Ignore transaction costs

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