Assume a risk-free asset in the us is currently yielding 27


Question: Assume a risk-free asset in the U.S. is currently yielding 2.7 percent while a Canadian risk-free asset is yielding 2.8 percent and the current spot rate is Can$.8829 = $1. What is the approximate 6-month forward rate if interest rate parity holds?

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Finance Basics: Assume a risk-free asset in the us is currently yielding 27
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