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21. Subsidiary A sells inventory with a cost of $10 to subsidiary B for $15. Subsidiary B then sells the finished goods with a cost of $15 to a domestic independent third party for $25. The international transfer price is $ .
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21. Assume: (1) the US annual interest rate = 10%; (2) the Malaysian annual interest rate = 4%; and (3) the 90-day forward rate for the Malaysian ringgit = $.3864. At what current spot rate will interest rate parity hold?
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