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Assume that the four-year annualized interest rate in the United States is 7 percent and the four-year annualized interest rate in Singapore is 5 percent.
Assume that the four-year annualized interest rate in the United States is 7 percent and the four-year annualized interest rate in Singapore is 5 percent. Assume interest rate parity holds for a four-year horizon. Assume that the spot rate of the Singapore dollar is $.60. If the forward rate is used to forecast exchange rates, the forecast for the Singapore dollar's spot rate in four years will be $____
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