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Assume that interest rate parity holds and that 90 -day risk-free securities yield 5% in the United States and 5.3% in Germany. In the spot
Assume that interest rate parity holds and that 90 -day risk-free securities yield 5% in the United States and 5.3% in Germany. In the spot market, 1 euro equals $1.37. What is the 90-day forward rate? Do not round intermediate calculations. Round your answer to four decimal places. $ Is the 90 -day forward rate trading at a premium or discount relative to the spot rate
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