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Suppose that you are the international treasurer of Apple with an extra U.S. $10 million to invest for 9 months. You are considering the purchase
Suppose that you are the international treasurer of Apple with an extra U.S. $10 million to invest for 9 months. You are considering the purchase of U.S. T-bills that yield 1.50% annual rate. The spot exchange rate is $1.00 = 100, and the 9 month forward rate is $1.00 = 110. What must the interest rate in Japan be before you are willing to consider investing there for 9 months?
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