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2. Review the data on forward rates from The Wall Street Journal or another source to determine whether the chinese currency typically exhibits a discount
2. Review the data on forward rates from The Wall Street Journal or another source to determine whether the chinese currency typically exhibits a discount or a premium. Then review data on interest rates to compare china and the U.S. interest rates. Does it appear that the forward rate of the chinese currency exhibits a premium (discount) when its interest rate is lower (higher) than the U.S. interest rate, as suggested by interest rate parity?
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