Question: It is possible to borrow and lend for one year in the United States at 6% and in Sweden at 9%. What is the equilibrium

It is possible to borrow and lend for one year in the United States at 6% and in Sweden at 9%. What is the equilibrium one-year forward rate according to interest rate parity if the spot rate is: a. USD/SEK0.14?

b. USD/SEK0.16?

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