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If the 1-year interest rate is 2.25 percent in the UnitedStates; the EURO-USD spot exchange rate is $1.10000/?; and the1-year forward exchange rate is $1.12475/?.

If the 1-year interest rate is 2.25 percent in the UnitedStates; the EURO-USD spot exchange rate is $1.10000/â?¬; and the1-year forward exchange rate is $1.12475/â?¬. What must the 1-yearinterest r 2 answers

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