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The spot rate is $1.12 per euro and the interest rate in the US is...

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Finance

The spot rate is $1.12 per euro and the interest rate in the US is 3%. The interest rate in Germany is 1%. For an investment in Germany to break even with an investment in US (both in riskless bonds) the breakeven exchange rate (in dollars per euro) next year will be:

1.1422

1.1515

1.1587

1.1605

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