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Suppose that the one-year interest rate is 4.0 percent in Italy, the spot exchange rate is $1.60/, and the one-year forward exchange rate is $1.58/.

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Suppose that the one-year interest rate is 4.0 percent in Italy, the spot exchange rate is $1.60/, and the one-year forward exchange rate is \$1.58/. What must the oneyear interest rate be in the United States

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