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Suppose that the spot exchange rate in $ per Yen is .008996 and the 1-year forward exchange rate is .009221. If the interest rate in
- Suppose that the spot exchange rate in $ per Yen is .008996 and the 1-year forward exchange rate is .009221. If the interest rate in the U.S is 4.5% what should be the interest rate in Japan according to covered interest parity? What is the reason for this difference in rates according to the international Fisher effect?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
