Solved: Annual rate of interest on deposits in the united states, Finance Basics

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Annual rate of interest on deposits in the united states

Question: Assume that Interest Rate Parity holds. The spot rate for the Euro is $1.20 and the one year forward rate is $1.23. The annual rate of interest in Germany on annual deposits is 2.439%. What is the annual rate of interest on deposits in the United States?

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Finance Basics: Annual rate of interest on deposits in the united states

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