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INTEREST RATE PARITY Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 6.1% in the United States

INTEREST RATE PARITY Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 6.1% in the United States and a nominal annual rate of 6.63% in the United Kingdom. In the spot market, 1 pound = $1.46. a. What is the 90-day forward rate? Round your answer to the three decimal places. Do not round intermediate calculations. b. Is the 90-day forward rate trading at a premium or a discount relative to the spot rate? -Select- Premium Discount

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