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Assume that interest rate parity holds. The U.S. three-year interest rate is 8% annualized, and the Mexican three-year interest rate is 3% annualized. Today's spot

Assume that interest rate parity holds. The U.S. three-year interest rate is 8% annualized, and the Mexican three-year interest rate is 3% annualized. Today's spot rate of the Mexican peso is $0.20. What is the approximate three-year forecast of the peso's spot rate if the five-year forward rate is used as a forecast?

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