Assignment:
The forward-rate and spot-rate methods for discounting foreign-currency cash flows are equivalent if interest rate parity holds. Assume that interest rate parity does not hold for a specific currency because it is pegged to the dollar at a fixed exchange rate and capital flows are controlled by the monetary authorities in the country in question. Which method would apply in that case and why?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.