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5. Assume the spot rate for the Japanese yen currently is 98.48 per $1 and the one-year forward rate is 97.62 per $1. A risk-free

5. Assume the spot rate for the Japanese yen currently is 98.48 per $1 and the one-year forward rate is 97.62 per $1. A risk-free asset in Japan is currently earning 2.5 percent. If interest rate parity holds, approximately what rate can you earn on a one-year risk-free U.S. security?

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