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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 399 Weeks Ago, 1 Day Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Profit from Covered Interest Arbitrage Today, the 1-year U.S. interest rate is 4 percent, while the 1-year interest rate in Argentina is 17 percent. The spot rate of the Argentine peso (AP) is $.44. The 1-year forward rate of the AP exhibits a 14 percent discount. Determine the yield (percentage return on investment) to an investor from Argentina who engages in covered interest arbitrage
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