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Suppose that the one-year interest rate is 3.09% in the United States, the spot exchange rate is $1.42761.00, and the one-year forward exchange rate is

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Suppose that the one-year interest rate is 3.09% in the United States, the spot exchange rate is $1.42761.00, and the one-year forward exchange rate is $1.4459/E1.00. Based on interest rate parity, what must the one- year interest rate be in the curo zone? 2.088% % 1.785% 4.411% 1.754% 1.282% 1.614%

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