The current indirect rate is 0.833, the interest rate in the foreign country is 4%, and the interest rate in the home country is 3%. What is the forward indirect rate if t = 1?
A) 0.8411
B) 0.8426
C) 0.8439
D) 0.8448
Answer: A
Explanation: A) Forward Indirect Ratet = Current Indirect Rate × = 0.833 ∗ (1.04/1.03) = 0.8411.
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a. True b. False Indicate whether the statement is true or false
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