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Given the following data: R = $1.00/ F = $1.00/ i U.S. = % If the interest parity condition is expected to hold, interest rates
Given the following data: R = $1.00/ F = $1.00/ i U.S. = % If the interest parity condition is expected to hold, interest rates in Japan (iJapan) should equal negative 0.53% (enter your answer as a percentage rounded to two decimal places).
answer is -0.53
The interest parity condition is given by: D = i + F-R R where i is the interest rate, D indicates the domestic country, and * indicates the foreign country OKStep by Step Solution
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