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A 1- year Canadian bond with a face value of 5000 can be purchased at 4800.
a) Calculate the nominal interest rate in Canada.
b) if the Canadian dollar is expected to depreciate against the US dollar by 1 % over the next year, calculate the current nominal interest rate in the US.
c) How much could an American bond with the same Face value as the Canadian bond sell in the market?
using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000
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