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Question 5 What is the meaning of uncovered interest rate parity? Describe how the notion of 'unbiased forward rates' help in defining the uncovered interest

Question 5 What is the meaning of uncovered interest rate parity? Describe how the notion of 'unbiased forward rates' help in defining the uncovered interest parity. (100-120 words) (5 marks)

What is the meaning of uncovered interest rate parity? Describe how the notion of 'unbiased forward rates' help in defining the uncovered interest parity, (100120 words)

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