You are examining the exchange rate between the U.S. dollar and the Euro and have the following information:

• Current exchange rate is 1.25 USD per EUR.
• Current USD-denominated 1-year risk-free interest rate is 4% per year (annually compounded).
• Current EUR-denominated 1-year risk-free interest rate is 7% per year (annually compounded).

According to the interest rate parity theorem, what is the 1-year forward exchange rate?