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  3. 4. the korean won has fallen nearly 20% over the p

4. The Korean Won has fallen nearly 20% over the past year relative to the...

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Finance

4. The Korean Won has fallen nearly 20% over the past year relative to the US$:If the uncovered interest parity theory were correct, what should Korean interest rates have been one year ago if rates in the U.S. were 10%: (a) 10%; (b) 20%; (c) 30%; (d) 0;

5. If the USD/GBP exchange rate was 1:6595;the 60 day forward rate was 1:6545;and the 2-month U.S. Treasury bill rate was 4:58%:What is the 2-month yield of British T-bills if covered interest parity holds: (a) 6.39; (b) 4.55; (c) 3.33; (d) 4.58;

6. If the USD/GBP exchange rate was 1:6667;the 90 day forward rate was 1:6938;and the 3-month yield of British T-bills is 3:72%. What is the yield on 3-month U.S. Treasury bills:if covered interest parity holds: (a) 6.39; (b) 10.28; (c) 7.33; (d) 6.38;

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