Are the euro, yen and Canadian dollar trading at a premium or discount to the U.S....

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Are the euro, yen and Canadian dollar trading at a premium or discount to the U.S....

Are the euro, yen and Canadian dollar trading at a premium or discount to the U.S. dollar? What are indicative interest rates in each of those countries? Use T-Bills from their treasury rates.

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Answer 1

Answer #1

Euro is trading at a premium to Usd as 1 euro can buy more than 1 currency.

Whereas Cad and Jpy are trading at a discount to usd.

The one year T-bill rate for us is 0.58%

For canada it is 0.57%

And for japan it is -0.3% i.e they are negative intrest rate regime.

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Answer 2

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