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Given that annual deposit rates for Dollars and Euros are 8% and 6% respectively for the next 5 years. If the current spot rate of the Euro is $1.1845, obtain the implied rate for the Euro five years from
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Given that annual deposit rates for Dollars and Euros are 8% and 6% respectively for the next 5 years. If the current spot rate of the Euro is $1.1845, obtain the implied rate for the Euro five years from now if International Fisher Equation (IFE) holds exactly.

a. $1.5415
b. $1.2742
c. $1.4284
d. $1.3750
e. None of the above.

User Roelant M
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Answer:

is the a

Step-by-step explanation:

User Calinaadi
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