14. Interest rate parity 1. 2. 3. STEP: 1 of 3 Suppose that the six-month interest rate in the United States is 5%, while the six-month interest rate in Mexico is 6%. Further, assume the spot rate of the peso is $0.40. (not According to interest rate parity (IRP), the forward rate premium of the peso with respect to the U.S. dollar should be annualized) 14. Interest rate parity 1. 2. 3. -1.0377% STEP: 1 of 3 -0.9434% Suppose that the six-month interest rate in the United States is 5%, while the six-month interest rate in Mexico is 6%. -0.8491% me the spot rate of the peso is $0.40. -0.7547% (not According to interest rate parity (IRP), the forward rate premium of the peso with respect to the U.S. dollar should be annualized)