Question
A Japanese investor can earn a 1% annual interest rate in Japan or about 4% per year in the U.S. If the spot exchange rate
A Japanese investor can earn a 1% annual interest rate in Japan or about 4% per year in the U.S. If the spot exchange rate is 115 yen to the dollar at what one year forward rate would an investor be indifferent between the U.S. and Japanese investments?
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
