Assume that interest rate parity holds and that 90-day risk-free securities yield 4% in the United States and 4.5% in Germany. In the spot market, 1 euro equals $1.35.

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?

The 90-day forward rate is trading at a -Select-premiumdiscountItem 2 relative to the spot rate.