Question
7. Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.0086 dollar. In Japan,
7. Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.0086 dollar. In Japan, 90- day risk- free securities yield 4.6%. What is the yield on 90 day risk free securities in the USA?
Answer 4.6%
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The Social Profit Handbook
Authors: David Grant
1st Edition
1603586040, 978-1603586047
