What is the no-arbitrage 1-year forward rate

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Question: Suppose you observe a spot exchange rate of $1.7189/€. If interest rates are 5.6% APR in the U.S. and 4.2% APR in the euro zone, what is the no-arbitrage 1-year forward rate for the euro in terms of dollars (USD/EUR)?

Reference no: EM132984762

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