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Use the following information to answer the next three questions. ABritish money managerobserves that the one-year interest rate is 8 percent in the United Kingdom

Use the following information to answer the next three questions.

ABritish money managerobserves that the one-year interest rate is 8 percent in the United Kingdom and 10 percent in the US. The current spot exchange rate is $1.05/.What should be the one year forward rate according to IRP?Assume the UK is the domestic nation. Round intermediate steps to four decimals.

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