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Suppose US interest rates are 6% and UK rates are 12% for the same 5-Year Sovereign Note. If the covered interest arbitrage relationship holds in

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Suppose US interest rates are 6% and UK rates are 12% for the same 5-Year Sovereign Note. If the covered interest arbitrage relationship holds in equilibrium, then what should the exchange rates be doing in the forward markets? If not in equilibrium, what might you do

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