Question: Suppose that the interest rate over a year is 3 % in U . S . and 1 % in Japan. If the current spot

Suppose that the interest rate over a year is 3% in U.S. and 1% in Japan. If the current spot rate of Japanese yen is ($/)0.012, and the CIRP holds in an approximated form, what should be the 1-year forward rate of Japanese yen?

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