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Suppose that the six-month interest rate in the United States is 5%, while the six-month interest rate in Mexico is 8%. Further, assume the spot

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Suppose that the six-month interest rate in the United States is 5%, while the six-month interest rate in Mexico is 8%. Further, assume the spot rate of the peso is $0.25 Given the spot rate of $0.25 of the peso, as well as the premium of -2.7778% that you calculated previously, the six month forward rate of peso should be about under IRP $0.26737 $0.24306 Suppose that the nterest rate in the United Stat of the peso is $0. $0.29167 Given the spot ra $0.17014 of the peso, as well as the premt should be about under IRP

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