Assume that the one year forward rate is used as the forecast of the future spot rate. The malaysian ringgits spot rate is $.20 while its one year foreward rate is $.19. The malaysian one year interest rate is 11 percent. What is the expected effective yield on a one year deposit in malaysia by a U.S firm?

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Assume that the one year forward rate is used as the forecast of the future spot rate. The malaysian ringgits spot rate is $.20 while its one year foreward rate is $.19. The malaysian one year interest rate is 11 percent. What is the expected effective yield on a one year deposit in malaysia by a U.S firm?

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