Assume a risk-free asset in the U.S. is currently yielding 4.1 percent, a Canadian risk-free asset is

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Assume a risk-free asset in the U.S. is currently yielding 4.1 percent, a Canadian risk-free asset is yielding 3.7 percent, and the current spot rate is C$1.2633 (Canadian Dollar per U.S. dollar). What is the approximate three-year forward rate if interest rate parity holds? Please show your work.

Posted Date: May 11, 2024 03:48 AM

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Assume a risk-free asset in the U.S. is currently yielding 4.1 percent, a Canadian risk-free asset is

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