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Quantitative Problem: Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.007, while in the 180-day forward market 1 Japanese

Quantitative Problem:
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.007, while in the 180-day forward market 1 Japanese yen =$0.0078. 180-day risk-free securities yield 1.70% in Japan, Whal
is the vied on 80-day risk-free securities in
the United States? Do not round
intermediste cakulations. Round our answer to two decmal places.

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