Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual...
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Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 4% in the United States and a nominal annual rate of 4.6% in the United Kingdom. In the spot market, 1 pound = $1.2.
- What is the 90-day forward rate? Do not round intermediate calculations. Round your answer to the four decimal places.
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