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In Jan 2003, the interest rate on the Japanese Yen was 1.75%, and on the Australian dollar was 5.00%. The spot rate was S(/AU$)=69.40. Tom

In Jan 2003, the interest rate on the Japanese Yen was 1.75%, and on the Australian dollar was 5.00%. The spot rate was S(/AU$)=69.40. Tom Bohn, a hedge fund trader specializing in FX trading in Blackrock Inc, started a carry trade between Yen and Australia for one year. Then the carry (interest rate differential) between Yen and AU$ was _______% (Two decimal places in your answer. )

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