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What is the expected spot rate

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The one-year interest rates for the USD and the AUD are: rUs = 6% and ra = 4%. Assume that Xo "USD/AUD = 0.73 and that the spot rate is consistent with the Uncovered Interest Rate Parity (UIRP) Condition. According to UIRP, what is the expected spot rate at t = 1?

Reference no: EM133070276

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