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QUESTION

Suppose that an investor in the US claims the future value of a $100 in US bonds and Euro bonds is the same.

Suppose that an investor in the US claims the future value of a $100 in US bonds and Euro bonds is the same. The US interest rate is 6%, the Euro interest rate is 10%, and the current exchange rate Et is 0.6. Then for his claim to be true, the future exchange rate Et+1 must be ____ . (find closest number)

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