Covered interest rate parity holds

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The current spot exchange rate is 1 USD = 6.40 NOK, and the 90-day forward exchange rate is 1 USD = 6.50 NOK. The 90-day interest rate in Norway is 10%. Suppose that the covered interest rate parity holds. 3 What is the 90-day interest rate in the US? Show your working

Reference no: EM13933427

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