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Q2. (5 pts total). Suppose the spot rate is Yen 90/$, the three-month forward rate Yen 88/$ and the three-month yen interest rate 2.5%. (Show

Q2. (5 pts total). Suppose the spot rate is Yen 90/$, the three-month forward rate Yen 88/$ and the three-month yen interest rate 2.5%. (Show your calculations!)

a) (5 pts). What is the implied three-month US$ interest rate?

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