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. (Round to the nearest 2 decimal points)

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. (Round to the nearest 2 decimal points)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 7MC

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