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Suppose that the six-month interest rate in the United States is 1%, while the six-month interest rate in Britain is 3%. Further, assume the spot

image text in transcribed Suppose that the six-month interest rate in the United States is 1%, while the six-month interest rate in Britain is 3%. Further, assume the spot rate of the pound is 1.6 . Given the spot rate of 1.6 of the pound, as well as the premium of 1.9417% that you calculated previously, the six month forward rate of pound should be about under IRP

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