Currency per U.S. $ Australia dollar 1.2377 6-months forward 1.2356 Japan Yen 100.3300 6-months forward 100.0500 U.K. Pound .6792 6-months forward .6781 Suppose interest rate parity holds, and the current risk-free rate in the United States is 5 percent per six months.

Use the approximate interest rate parity equation to answer the following questions.

Requirement 1: What must the six-month risk-free rate be in Australia? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate %

Requirement 2: What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate %

Requirement 3: What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate %