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Home / Questions / If interest rate parity holds and the transaction costs are zero, covered foreign financin

If interest rate parity holds and the transaction costs are zero, covered foreign financin

If interest rate parity holds and the transaction costs are zero, covered foreign financing will result in an effective borrowing rate that is


[A]Less than domestic interest rate
[B]Greater than domestic interest rate
[C]Equal to domestic interest rate
[D]Less than domestic interest rate if forward rate is in discount

Dec 27 2017 View more View Less

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