Question
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.009194, while in the 90-day forward market 1 Japanese yen =
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.009194, while in the 90-day forward market 1 Japanese yen = $0.009234. In Japan, 90-day risk-free securities yield 1.5%. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places.
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
