David estimated a six-month forward rate of C$1.01 per US$.The six-month US$ interest rate is currently 4%.If David's estimate is based on Interest Rate Parity, what was the observed current six-month Canadian interest rate, if the spot rate is C$1.02 per US$?
A)5.03%
B)2.03%
C)2.98%
D)2.05%

Question

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The Answer of David estimated a six-month forward rate of C$1.01 per US$.The six-month US$ interest rate is currently 4%.If David's estimate is based on Interest Rate Parity, what was the observed current six-month Canadian interest rate, if the spot rate is C$1.02 per US$?
A)5.03%
B)2.03%
C)2.98%
D)2.05%

David Estimated a Six-Month Forward Rate of C$1