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The US 2-year interest rate is 2.40% and the Spanish 2-year interest rate is 3.20%. The spot rate is $1=.750. Assuming interest rate parity holds,

The US 2-year interest rate is 2.40% and the Spanish 2-year interest rate is 3.20%. The spot rate is $1=.750. Assuming interest rate parity holds, estimate the 2-year forward rate (euros to one dollar).

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