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Suppose that the six - month interest rate in the United States is 1 % , while the six - month interest rate in Mexico

Suppose that the six-month interest rate in the United States is 1%, while the six-month interest rate in Mexico is 3%. Further, assume the spot rate
of the peso is $0.25.
According to interest rate parity (IRP), the forward rate premium of the peso with respect to the U.S. dollar should be
(not annualized).
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