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Suppose the yearly interest rate on a U.S. bond is ius = 12%, while the interest rate on European bond is i EUR = 18%.

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Suppose the yearly interest rate on a U.S. bond is ius = 12%, while the interest rate on European bond is i EUR = 18%. If the exchange rate in USD per euro is EUSD/EUR = 1.2, calculate the forward rate for one year

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