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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?
Usefulness of Variance Analysis Carefully note that while prices are being charged to production, it can be done at the actual or standard price. For purposes of making varian
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