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Interest Rate Parity The nominal yield on 6-month T-bills is 5%, while default-freeJapane

Interest Rate Parity

The nominal yield on 6-month T-bills is 5%, while default-freeJapanese bonds that mature in 6 months have a nominal rate of 4%.In the spot exchange market, 1 yen equals $0.01. If interest rateparity holds, what is the 6-month forward exchange rate? Round theanswer to five decimal places.

$ ____

 

Dec 04 2019 View more View Less

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