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7. Long-term forecasting Annual interest rate for 5 years U.S. 10% U.K. 13% Spot rate of BP is $1.50 a. What is the forward premium

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7. Long-term forecasting Annual interest rate for 5 years U.S. 10% U.K. 13% Spot rate of BP is $1.50 a. What is the forward premium (discount) if the 5-year forward rate is used as a forecast? b. What is the expected change in BP in 5 years? c. What is the future spot rate of BP in 5 years

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