Interest rate parity theorem
Definition
Expression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate.
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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
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A top-down, float capitalization-weighted index used to measure the performance of fixed-income and equity markets. It includes approximately 6000 companies in 22 countries.
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