assume that interest rate parity holds and that 180 day risk free securities yield a...
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assume that interest rate parity holds and that 180 day risk free securities yield a nominal annual rate of 6% in the US and a nominal annual rate of 5% in the european union. in the spot market, 1 euro = $1.25. what is the 180 day forward rate? (assume a 360-day year)
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