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Suppose that the one-year interest rate is 4.00% in the United States, the spot exchange rate is $1.4764/1.00, and the one-year forward exchange rate is

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Suppose that the one-year interest rate is 4.00% in the United States, the spot exchange rate is $1.4764/1.00, and the one-year forward exchange rate is $1.4971/1.00. Based on interest rate parity, what must the one- year interest rate be in the euro zone? 04.048% 2.946% 2.562% 5.458% 2.298% 1.402%

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