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Currency per U.S. $ U.K. Pound 0.5135 6-months forward () 0.5204 Japan Yen 108.21 6-months forward () 106.96 Switzerland Franc 1.0492 6-months forward (SF) 1.0478

Currency per U.S. $ U.K. Pound 0.5135 6-months forward () 0.5204 Japan Yen 108.21 6-months forward () 106.96 Switzerland Franc 1.0492 6-months forward (SF) 1.0478 Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 2.9 percent. What must the six-month risk-free rate be in Great Britain? What must the six-month risk-free rate be in Japan?

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