Question: Please include financial calculator inputs needed, if possible, in solution. Interest Rate Parity: Practice 2 Assume a risk-free asset in the U.S. is currently yielding

Please include financial calculator inputs needed, if possible, in solution. Interest

Please include financial calculator inputs needed, if possible, in solution.

Interest Rate Parity: Practice 2 Assume a risk-free asset in the U.S. is currently yielding 4.1 percent, a Canadian risk-free asset is yielding 3.7 percent, and the current spot rate is C$1.2633. What is the approximate three-year forward rate if interest rate parity holds? Ft = S, [1 + (RFC - R Rus)] . F3 = C$1.2482

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