5. (10 pts) Suppose that the dollar-yen spot exchange rate is $0.0090/% and the 90-day forward exchange rate is $0.0091/%. The annual interest rate on US bonds is 6%. a. Assuming that covered interest parity holds, calculate the Japanese annual interest rate on bonds of equivalent risk. b. Suppose now that the annual interest rate on US bonds rose to 8%. Assuming that the Japanese interest rate and the spot exchange rate remain constant, calculate what the forward rate would have to change to in order to reestablish covered interest parity.