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Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 4.02 percent and the one-year risk-free rate in Japan is 4.35 percent.

Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 4.02 percent and the one-year risk-free rate in Japan is 4.35 percent. The spot rate between the Japanese yen and the U.S. dollar is 114.33/$. What is the one-year forward exchange rate? Multiple Choice 117.53/$ 114.33/$ 113.97/$ 114.69/$ 116.56/$

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