What is the one-year risk-free rate in the u.s.

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Reference no: EM13266419

The one-year forward rate for the British pound is £0.6781 = $1. The spot rate is £0.6789 = $1. The interest rate on a risk-free asset in the UK is 4.6 percent. If interest rate parity exists, what is the one-year risk-free rate in the U.S.?

4.68 percent
4.72 percent
4.77 percent
4.83 percent

Reference no: EM13266419

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