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    Can someone with knowledge in International Financial management help with the following problem:

    Bullock Corporation invests 1,500,000 South African rand at a nominal interest rate of 10%. At the time the investment is made, the spot rate of the rand is $.205. If the spot rate of the rand at maturity of the investment is $.203, what is the effective yield of investing in rand?

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    Solution Preview

    I am assuming the holding period as one WEEK. Thus interest to be paid is ...

    Solution Summary

    The solution examines international financial management. The effective yield of investing in rand is given.