The risk-free nominal rate in the us is 38 percent while it


Assume the spot rate on the Canadian dollar is C$1.0947. The risk-free nominal rate in the U.S. is 3.8 percent while it is 4.1 percent in Canada. What one-year forward rate will create interest rate parity?

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Finance Basics: The risk-free nominal rate in the us is 38 percent while it
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