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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 is 2%. Further, assume the spot

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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 is 2%. Further, assume the spot rate of the peso is $0.20. (not According to interest rate parity (IRP), the forward rate premium of the peso with respect to the U.S. dollar should be annualized). Grade Step 1 TOTAL SCORE: 0/5 (to complete this step and unlock the next step)

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