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Assume that interest rate parity holds. the US five year interest rate is 3% annualized, and the mexican five year interest rate is 8% annualized.

Assume that interest rate parity holds. the US five year interest rate is 3% annualized, and the mexican five year interest rate is 8% annualized. todays spot rate of the mexican peso is $0.2. the approzimate fuve year forecast of the peso's spot rate is what if the five year forward rate is used as a forecast?

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