Hi Sir,
I would like to know which interest rate is used in IRPT formula.
Do we use the borrowing rate or the deposit rate?
assuming a question had the two rates provided.
K.regards
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IRPT (Interest rate parity theory)
8y ago#1If there are two rates provided (which would be unusual in the exam) then use either - provided that you use either both borrowing rates, or alternatively both deposit rates.
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