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The $ / spot rate is $ 1 . 6 0 / 1 . The UK interest rate is 4 % and the US interest

The $/ spot rate is $1.60/1. The UK interest rate is 4% and the US interest rate is 9%. Calculate the one year forward rate using the covered interest parity formula. (Show your workings in full). State if the pound is at a forward discount or at a forward premium.

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