Question
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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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
