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Assume that the annual interest rate in the U.S. is 1%, while the annual interest rate in South Africa is 5%. According to Interest Rate

Assume that the annual interest rate in the U.S. is 1%, while the annual interest rate in South Africa is 5%. According to Interest Rate Parity, what should the forward rate premium or discount of the South African rand (ZAR) be? If the ZAR spot rate is $0.0620, what should the one-year forward rate of the rand be (to four decimal places)?

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