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Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 2.42 percent and the one-year risk-free rate in Japan is 2.85 percent.
Assume interest rate parity holds. The one-year risk-free rate in the U.S. is 2.42 percent and the one-year risk-free rate in Japan is 2.85 percent. The spot rate between the Japanese yen and the U.S. dollar is 110.13/$. What is the one-year forward exchange rate? 110.13/$ 110.60/$ 112.46/$ 109.67/$ 113.43/$
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