Question: Suppose that the return on dollar bonds for 2 years is K$=3%, the present exchange rate is S(0)=1.2 dollars to a pound, and K f

  1. Suppose that the return on dollar bonds for 2 years is K$=3%, the present exchange rate is S(0)=1.2 dollars to a pound, and Kf=5%,what is the forward rate for a forward contract with delivery date T=2?

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