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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

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.

 

Abhinav 04-Dec-2019

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