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one-year interest rate is 3.50% in the United States, the spot exchange rate is $1.2436/1.00, and the one-year forward exchange rate is $1.2738/1.00. Based on

one-year interest rate is 3.50% in the United States, the spot exchange rate is $1.2436/1.00, and the one-year forward exchange rate is $1.2738/1.00. Based on interest rate parity, what must the one year interest rate be in the euro zone

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