The current USD/euro exchange rate is 1.127 dollar per euro. The six month forward exchange rate is 1.117. The six month USD interest rate is 1.41% per annum continuously compounded. Estimate the six month euro interest rate (in percent). Use three decimal places for your answer.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The current USD/euro exchange rate is
1.127 dollar per euro. The six month
forward exchange rate is 1.117. The six
month USD interest rate is 1.41% per
annum continuously compounded.
Estimate the six month euro interest rate
(in percent). Use three decimal places for
your answer.
answer: 3.193
Transcribed Image Text:The current USD/euro exchange rate is 1.127 dollar per euro. The six month forward exchange rate is 1.117. The six month USD interest rate is 1.41% per annum continuously compounded. Estimate the six month euro interest rate (in percent). Use three decimal places for your answer. answer: 3.193
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