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5. Assume that the 1-year interest rate in the United States is 2% and the 1-year interest rate in Sweden is 4%. Is there a

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5. Assume that the 1-year interest rate in the United States is 2% and the 1-year interest rate in Sweden is 4%. Is there a premium or discount on the Swedish krona? 6. If two countries had identical term structures of interest rates, what is the expected future exchange rate change between the two currencies? 5. Assume that the 1-year interest rate in the United States is 2% and the 1-year interest rate in Sweden is 4%. Is there a premium or discount on the Swedish krona? 6. If two countries had identical term structures of interest rates, what is the expected future exchange rate change between the two currencies

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