Question
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.006, while in the 180-day forward market 1 Japanese yen =
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.006, while in the 180-day forward market 1 Japanese yen = $0.0067. 180-day risk-free securities yield 1.45% in Japan. What is the yield on 180-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places.
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
