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Find what is the annual european risk-free interest rate

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Reference no: EM132720250

Problem 1: The US risk-free interest rate is 2.1% per year, the spot exchange rate is $1.25 per euro, and the one-year forward exchange rate is $1.26 per euro. If interest rate parity holds, what is the annual European risk-free interest rate?

Reference no: EM132720250

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