Interest Rate Parity The nominal yield on 6-month T-bills is 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 4%. In the spot exchange market, 1 yen equals $0.01. If interest rate parity holds, what is the 6-month forward exchange rate? Do not round intermediate calculations. Round your answer to five decimal places. $ Exchange Rate If euros sell for $1.25 (U.S.) per euro, what should dollars sell for in euros per dollar? Round your answer to four decimal places. euros per dollar Interest Rate Parity Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.009 dollar. In Japan, 90-day risk-free securities yield 4%. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places. Purchasing Power Parity In the spot market, 8.9 pesos can be exchanged for 1 U.S. dollar. A pair of headphones costs $9 in the United States. If purchasing power parity holds, what should be the price of the same headphones in Mexico? Do not round intermediate calculations. Round your answer to two decimal places. pesos Interest Rate Parity Assume that interest rate parity holds and that 90-day risk-free securities yield 3% in the United States and 3.5% in Germany. In the spot market, 1 euro equals $1.39. What is the 90-day forward rate? Do not round intermediate calculations. Round your answer to four decimal places. $