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Please include financial calculator inputs needed, if possible, in solution. Interest Rate Parity: Practice 1 . Assume the spot rate on the Canadian dollar is

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Please include financial calculator inputs needed, if possible, in solution.

Interest Rate Parity: Practice 1 . Assume the spot rate on the Canadian dollar is C$1.2648, the risk-free nominal rate in the U.S. is 3.3 percent, and the risk-free nominal rate in Canada is 3.8 percent. What one-year forward rate will create interest rate parity? F S. ((1+R$C)(1+ Rus) F1 = C$1.2709

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