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Assume the following: Spot USDBRL = 4.0500 6MO USD Money Market Rates = 2.5% 6MO BRL Money Market Rates = 8.75% What is the 6MO

Assume the following:

Spot USDBRL = 4.0500

6MO USD Money Market Rates = 2.5%

6MO BRL Money Market Rates = 8.75%

What is the 6MO USDBRL forward rate?

(Recall that Money Market Rates are quoted on an annualized basis)

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