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Suppose the Euro / Dollar Exchange Rate is 1 = $ 1 . 2 8 3 , the annual US riskfree rate is 3 .

Suppose the Euro/Dollar Exchange Rate is 1= $1.283, the annual US riskfree rate is 3.61%, the US inflation rate is 2.69%, and the annual Eurozone riskfree rate is 5.3%. What is the one-year Forward Euro/Dollar Exchange Rate, the one-year ahead Expected Spot Euro/Dollar Exchange Rate, and Eurozone inflation rate?

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