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The spot rate for a foreign currency is 1.4362 while the 1 -year forward rate is 1.4386. Assume the inflation rate in the U.S. is

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The spot rate for a foreign currency is 1.4362 while the 1 -year forward rate is 1.4386. Assume the inflation rate in the U.S. is 1.20 percent. What is the approximate rate of inflation in the foreign country? 1.35% 1.37% 1.39% 1.41% 1.43%

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