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Assume that interest rate parity holds and that 45-day risk-free securities yield a nominal annual rate of 5% in the US and a nominal annual

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Assume that interest rate parity holds and that 45-day risk-free securities yield a nominal annual rate of 5% in the US and a nominal annual rate of 4% in the UK. In the spot market, 1 pound = $1.32. What is the 45-day forward rate? (Assume a 360 day year). 1.32587 dollars per pound 1.31782 dollars per pound 1.32568 dollars per pound 1.31354 dollars per pound 1.32164 dollars per pound

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