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Assume that interest rate parity holds and that 90-day risk-free securities yleld 5% in the...

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Accounting

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Assume that interest rate parity holds and that 90-day risk-free securities yleld 5% in the United States and 5.4% in Germany. In the spot market, 1 euro equals $1.39. What is the 90-day forward rate? Do not round intermediate calculatlons. Round your answer to four decimal places. 5 Is the 90-day forward rate trading at a premium or discount relative to the spot rate?? The 90-day focward rate is trading at a relative to the spot rate

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