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Problem 5: Assume that rEUR-7% and rusD-496, what is the 1-Year synthetic forward rate, given that XUSD/EUR = 1.187 Problem 6: Today's GBP/USD spot rate

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Problem 5: Assume that rEUR-7% and rusD-496, what is the 1-Year synthetic forward rate, given that XUSD/EUR = 1.187 Problem 6: Today's GBP/USD spot rate is, XusD/GBP-1.28. Assume that rGBP-6% and ruso-496, if the 1-year USD/GBP forward rate is FUSD/GBP-1.28, according to the Covered Interest Rate parity (CIRP), is the GBP underpriced/overpriced in the actual forward contract

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