[Solved] Suppose the one-year interest rate is 4.0

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Suppose the one-year interest rate is 4.0 percent in the United States; The spot rate is $1.25/EUR, and the forward exchange rate for one year

Suppose the one-year interest rate is 4.0 percent in the United States; The spot rate is $1.25/EUR, and the forward exchange rate for one year is 1.16 USD/EUR. What should be the one-year interest rate in the eurozone to avoid arbitrage?

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