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Suppose U.S. interest rates are 10%, European interest rates are 7%, and the current spot rate is 1 Euro = 19 US Dollars. According to
- Suppose U.S. interest rates are 10%, European interest rates are 7%, and the current spot rate is 1 Euro = 19 US Dollars. According to interest rate parity, what is the equilibrium forward rate (in other words, based on the forward rate, how many US dollars will 1 Euro be worth in the future)? Give your answer to four decimal places (for example if 1 Euro will be worth 5555 US Dollars, write your answer as 1.5555).
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
