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Interest rate parity

Sumit Rawal answered on October 23, 2022 Popularity 7/10 Helpfulness 2/10

answer Interest rate parity

Interest rate parity

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Interest rate parity is the fundamental equation that governs the relationship between interest rates and currency exchange rates. The basic premise of interest rate parity is that hedged returns from investing in different currencies should be the same, regardless of their interest rates.

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Contributed on Oct 23 2022

Sumit Rawal

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