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4. The spot rate between the Japanese yen and the U.S. dollar is 107.35/$, while the one-year forward rate is $108.14/$. The one-year risk-free rate

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4. The spot rate between the Japanese yen and the U.S. dollar is \107.35/$, while the one-year forward rate is $108.14/$. The one-year risk-free rate in the U.S. is 2.63 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan? (50 POINTS)

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