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check Answer Assume that interest rate parity holds. The U.S. fiveyear interest rate is0.07 annualized, and the Mexican fiveyear interest rate is0.04 annualized. Today's spot

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Assume that interest rate parity holds. The U.S. fiveyear interest rate is0.07 annualized, and the Mexican fiveyear interest rate is0.04 annualized. Today's spot rate of the Mexican peso is $0.34. What is the approximate 10year forecast of the peso's spot rate if the 10year forward rate is used as a forecast?

Answer= 0.452

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