Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The interest rate on Indian government securities with one-year maturity is 8%, and the expected inflation rate for the coming year is 7%. The interest rate on US government securities with one-year maturity is 0.18% and the expected rate of inflation is 1.5%. The current spot exchange rate for Indian Rupee is $1=R56. Forecast the spot exchange rate one year from today. Explain the logic of your answer.

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