Annual rate of interest for usd


Problem:

Assuming the Interest Rate parity holds. The spot rate for swiss francs =$2.5, the 1-yr forward rate is $2.8, and the annual interest rate of a euros is 3%.

Required:

Question: What is the annual rate of interest for USD?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Annual rate of interest for usd
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