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Assume that the interest rate on a one-year bond in Sweden is 3 percent and 5 percent in the United States. One dollar costs 10.70
Assume that the interest rate on a one-year bond in Sweden is 3 percent and 5 percent in the United States. One dollar costs 10.70 today. What must the dollar exchange rate be in 1 year for there to be interest rate parity?
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