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Nominal annual interest rates in Germany are 5% The spot rate for the Euro

Nominal annual interest rates in Germany are 5%. The spot rate for the Euro is $1.21 and the Euro is expected to adjust to a future spot rate (one year from today) of $1.25. According to the international Fisher effect (IFE), what is the nominal interest rate in the United States?

May 28 2018 View more View Less

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