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Problem 3. Suppose today the two-year zero coupon rates are 4.63% in the US and 0.1% in Japan. Currently the exchange rate is $0.0085/Y. a)

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Problem 3. Suppose today the two-year zero coupon rates are 4.63% in the US and 0.1% in Japan. Currently the exchange rate is $0.0085/Y. a) Compute the 2-year forward exchange rate for the Yen, if you assume there are no arbitrage opportunities

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