Calculate the one year forward exchange rate

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Reference no: EM13239194

Assume that the Eurozone risk free interest rate on bonds with one year to maturity is 4.78 percent and the US ris
b- Is the euro trading at forward premium or discount?
c- Is your answer to part (b) consistent with interest rate parity? Explain.
k free interest rate on one year bonds is 3.15 percent. The current exchange .90 per euro. Assume that the United States is the domestic country.
a- Calculate the one year forward exchange rate.

Reference no: EM13239194

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