PART (b): The table below provides information on the interest rate on Australian (domestic) dollar deposits, the expected rate of dollar depreciation against Japanese Yen, and the difference between rate of return on dollar and Yen deposits. Use this information and calculate the interest rate on Yen deposits. Write these numbers in the blank (shaded) column to complete your answer [3 Marks]. ANSWER Expected Difference between Interest rate Interest rate rate of dollar rate of return on dollar on Yen depreciation on dollar and Yen deposits deposits against Yen deposits 0.3 0.02 0.2 1 0.4 0.05 0.27 0.2 0.07 0.08 0.3 0.20 0.07 0.4 0.05 0.39