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Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 3.86 percent and the one-year risk-free rate in Japan is 4.20 percent.

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Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 3.86 percent and the one-year risk-free rate in Japan is 4.20 percent. The spot rate between the Japanese yen and the U.S. dollar is 113.915. What is the one-year forward exchange rate? Multiple Choice 116.5/5 1172/5 13:15 VID 54/5 1425

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