The six-month forward exchange rate is 13950 the six-month


The current USD/euro exchange rate is 1.4000 dollar per euro.

The six-month forward exchange rate is 1.3950. The six-month USD interest rate is 1% per annum continuously compounded. Estimate the six-month euro interest rate.

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Financial Management: The six-month forward exchange rate is 13950 the six-month
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