The annualized yield on 3-year maturity U.S. government bonds is 4 percent, while the yield on similar

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The annualized yield on 3-year maturity U.S. government bonds is 4 percent, while the yield on similar maturity Swiss bonds is 5 percent. The current spot exchange rate between the dollar and the Swiss franc (CHF) is $0.61/CHF.

What is the expected future spot rate for the CHF in 3 years? L012

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