Based on interest rate parity what must the one year


One-year interest rate is 3.50% in the United States, the spot exchange rate is $1.2436/€1.00, and the one-year forward exchange rate is $1.2738/€1.00. Based on interest rate parity, what must the one year interest rate be in the euro zone.

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Finance Basics: Based on interest rate parity what must the one year
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