What is the implied forward rate

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The following information has been collected from the respective areas:

Assumptions London New YorkSpot exchange rate ($/€) 1.3264 1.3264One-year Treasury bill rate 3.5% 4.39%Expected inflation rate Unknown 1.250%

Given this information what is the implied forward rate ($/€)?

Answer as a percentage, use three decimal places.

Reference no: EM132774559

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