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The annual, riskless, nominal interest rate in the United statesis 5%. The spot rate betw

The annual, riskless, nominal interest rate in the United statesis 5%. The spot rate betw

The annual, riskless, nominal interest rate in the United statesis 5%. The spot rate between the yen (YPY) and the dollar (USD) isUSD 0.009791 / JPY and the 180-day forward rate between the yen andthe dollar is USD 0.009932 / JPY. What is the annual, riskless,nominal interest rate in Japan if the interest rate parityholds?

Abhinav 04-Dec-2019

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