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Problem 21-6 Interest Rate Parity [LO2] Use the information below to answer the following questions. Suppose interest rate parity holds, and the current six month

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Problem 21-6 Interest Rate Parity [LO2] Use the information below to answer the following questions. Suppose interest rate parity holds, and the current six month risk-free rate in the United States is 4 percent. Use the approximate interest rate parity equation to answer the following questions. a. What must the six-month risk-free rate be in Australia? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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