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Suppose the nominal interest rate in the U . S . is 5 % per year, the nominal interest rate in Brazil is 1 0

Suppose the nominal interest rate in the U.S. is 5% per year, the nominal interest rate in Brazil is 10% per year, and todays spot rate is S ($/BRL)=0.24. If the International Fisher Effect holds, what are the expected spot rates S ($/BRL) in three months, 6 months, and 1 year?

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