Interest Rates Among Countries As of today the interest

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Interest Rates Among Countries As of today the interest rate in Countries X Y and Z are similar. In the next month Country X is expected to have a weak economy while Countries Y and Z are expected to experience a 6% increase in economic growth. However conditions this month will also cause an increase in default risk of borrowers in Country Z in the next month because of political concerns while the default risk of Countries X and Y remain unchanged. During the next month which country should have the highest interest rate? Which country should have the lowest interest rate?

 

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