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Assume a risk-free asset in the U.S. is currently yielding 1.6 percent while a Canadian risk-free asset is yielding 1.9 percent. The current spot rate

Assume a risk-free asset in the U.S. is currently yielding 1.6 percent while a Canadian risk-free asset is yielding 1.9 percent. The current spot rate is CAD1.2440. What is the approximate 2-year forward rate if interest rate parity holds? CAD 1.2431 CAD 1.2452 CAD 1.2473 CAD 1.2494 CAD 1.2515

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