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Suppose that the current exchange rate is 3 Euro =1 AUD, but it is expected to be 2.70 Euro=1 AUD in one year. If the

Suppose that the current exchange rate is 3 Euro =1 AUD, but it is expected to be 2.70 Euro=1 AUD in one year. If the current interest rate on a one-year government bond in Germany is 8%, what does the interest-rate parity condition indicate that the interest rate will be on a one-year Australian government bond?

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