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Assume that the following information is available as of today US Germany Real rate of interest required by investors 1% 1% Nominal interest rate -

Assume that the following information is available as of today

US Germany
Real rate of interest required by investors 1% 1%
Nominal interest rate - 3%
Spot Rate -

($/)1.08
One-year forward rate - ($/)1.05

Find out the nominal interest rate in U.S. In your process for deriving the nominal interest rate, clearly explain which principle(s), i.e. parity, you are using.

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