Question
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.0091800, while in the 90-day forward market 1 Japanese yen =
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.0091800, while in the 90-day forward market 1 Japanese yen = $0.0091831. In Japan, 90-day risk-free securities yield 1%. 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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Municipal Finances A Handbook For Local Governments
Authors: Catherine D. Farvacque-Vitkovic, Mihaly Kopanyi
1st Edition
