What is the two-year forward rate

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Suppose the spot exchange rate for the Hungarian forint is HUF 221.53. The current one-year U.S. interest rate is 4.9 percent and the current Hungarian one-year interest rate is 8.6 percent. a. What is the one-year forward rate? b. If the two year U.S. and Hungarian interest rates are the same, what is the two-year forward rate?

Reference no: EM131072874

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