2) UIP: The current US/Mexican exchange rates are 0.0497 - 0.0501 $/peso. Assume 2-year interest...
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2) UIP: The current US/Mexican exchange rates are 0.0497 - 0.0501 $/peso. Assume 2-year interest rates in the US allow you to invest at annual rates of 3.2% or borrow at 3.5%. Assume 2-year interest rates in Mexico allow you to invest at annual rates of 9.8% or borrow at 10.1%. Given uncovered interest parity, what is the range of expected exchange rates in 2 years
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