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Finance

Assume that the following information is available as of today.

U.S. Germany

Real rate of interest required by investors 1% 1%

Nominal interest rate -- 3%

Spot rate -- ($/€)1.08

One-year forward rate -- ($/€)1.05

Find out the nominal interest rate in U.S. In your process for deriving the nominal interest rate, clearly explain which principle(s), i.e. parity, you are using.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91944411

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