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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 Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
