The U.S. dollar trades at an annual forward premium relative to the euro of 4.2%. If the United States is expected to have -1.1% inflation throughout the year, then what inflation rate can be expected in Europe? Round your answer to three decimal places. , %,,If the annual risk-free rate for the United States is 5.3%, what is the annual risk-free rate in Europe? Round your answer to four decimal places. , %,, ,
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