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Consider two bonds, one issued in euros (() in Germany, and one issued in dollars ($) in the United States. Assume that both government securities

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Consider two bonds, one issued in euros (() in Germany, and one issued in dollars ($) in the United States. Assume that both government securities are one-year bonds-paying the face value of the bond one year from now. The face values and prices on the two bonds are given by Face Value Price United States $10,000 $9,523.81 Germany (10,000 69,259.26 Compute the nominal interest rate on each of the bonds. Nominal interest rate on the U.S. bond = 5 %. (Enter your response as a whole number.) Nominal interest rate on the German bond = 8 %. (Enter your response as a whole number.) The exchange rate, E, stands at $1 = 60.77. Compute the expected exchange rate next year consistent with uncovered interest parity. The expected exchange rate next year with uncovered interest parity is | $. (Round your response to two decimal places.)

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