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If the covered interest parity holds, the spot rate of U.S. dollars for Canadian dollars was $1.05/C$1. Since that time the interest rate in the

If the covered interest parity holds, the spot rate of U.S. dollars for Canadian dollars was $1.05/C$1. Since that time the interest rate in the U.S. has been 6% greater than that in Canada. then what is the forward exchange rate? Show your work.

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