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5. If the spot rate is 1.1789 USD/EUR, the one year forward rate is 1.1934 USD/EUR, and the U.S. interest rate is 3.42%, what is

5. If the spot rate is 1.1789 USD/EUR, the one year forward rate is 1.1934 USD/EUR, and the U.S. interest rate is 3.42%, what is the European interest rate if Interest Rate Parity holds? a. 3.45% b. 2.21% c.2.16% d. 2.91% 1.934

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