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  3. suppose the 1-year domestic interest rate is 0.33,

Suppose the 1-year domestic interest rate is 0.33, keeping in mind that means (1000.33)%. Suppose...

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Finance

Suppose the 1-year domestic interest rate is 0.33, keeping in mind that means (1000.33)%. Suppose also that the 1-year forward exchange rate is 217, and the current spot exchange rate is 200, both measured in domestic currency per foreign currency. What is the 1-year foreign interest rate according to covered interest parity?

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