If interest rate parity is in effect what should be the 1, Financial Management

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If interest rate parity is in effect what should be the 1

Assume the following information:

1-year interest rate on U.S. dollars = 5.5%

1-year interest rate on Singapore dollars = 12%

Spot rate of Singapore dollar = 0.41 USD/SGD

If interest rate parity is in effect, what should be the 1 year forward rate on the SGD?

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Financial Management: If interest rate parity is in effect what should be the 1

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Financial Management: If interest rate parity is in effect what should be the 1

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