Home / Questions / Interest rate parity PLEASE ROUND CORRECTLY AND FOLLOWTHE DIRECTIONS IN THE PROBLEM THANKS
Interest rate parity PLEASE ROUND CORRECTLY AND FOLLOWTHE DIRECTIONS IN THE PROBLEM THANKS
Six-month T-bills have a nominal rate of 4%, while default-freeJapanese bonds that mature in 6 months have a nominal rate of 3%.In the spot exchange market, 1 yen equals $0.0083. If interest rateparity holds, what is the 6-month forward exchange rate? Round youranswer to five decimal places.
Dec 04 2019 View more View Less
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