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You are given that the deposit interest rate in the U.K. pound is 7% per...

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Finance

You are given that the deposit interest rate in the U.K. pound is 7% per year, and the pound is expected to depreciate against the U.S. dollar by 3%. What does the existence of Interest Rate Parity between the two countries imply about the deposit interest rate in U.S. dollar?

7%

3%

4%

21%

10%

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