a. How many Japanese yen do you get for your dollar? (Round your answer to 3 decimal places.) Amount b. What is the one-month fonward rate for yen? (Round your answer to 3 declmal places.) Forward rate c. Is the yen at a forward disoount or premium on the dollar? 117541 Discount Premiuri d. Use the one-year forward rate to calculate the annual percentage discount or premlum on yen. (Enter your answer as a positive value. Do not round Intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Annual percenlage premium e. If the one-year interest rate on dollars is 1.5% annuall com ounded what do you think is the one-year interest rate on en? Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Interest rate f. According to the expectations theory, what is the expected spot rate for yen in three months' time? (Round your answer to 3 decimal places.) Expected spot rate117 429 g. According to purchasing power parity theory, what then is the expected cifference in the three-month rate of price inflation in the United States and Japan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Enter your answer as a positive value.) Inflation In Japan over the 3 months is expected to be % | less than In the United States. Forward Rate Abbreviation Spot Rate 1 Month 3 Month 1 Year Europe: Euro Sweden (krona) Switzerland (franc) United Kingdom (pound) EUR or SEK CHF GBP or 1.2413 7.4567 0.9684 1.5678 1.2416 1.2421 7.4561 7.455 0.9681 0.9673 1.5674 1.5667 1.2463 7.4433 0.9621 1.5634 Americas: Brazil (real) Canada (dollar) Mexico (peso) BRL CAD MXN 2.5218 1.1228 3.6083 13.6375 13.6823 2.5449 2.5874 1.1236 1253 2.7858 1.1327 13.9248 Pacific/Middle East/Africa: AUD HKD INR JPY or Y ZAR KRW 1.1297 7.7573 66.3775 Australia (dollar) Hong Kong (dollar) India (rupee) Japan (yen) South Africa (rand) South Korea (won) 1.1544 11593 7.7573 7.7573 62.215 63.025 117.565 117.541 117.429 1.1516 7.7573 61.8 116.903 0.9308 10.9901 11.0976 11.6194 1113.9 1115.5 1118 1123.2
