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T-bills with a maturity of 6 months have a nominal rate of 1%, while default-free Japanese bonds that mature in 6 months have a nominal

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T-bills with a maturity of 6 months have a nominal rate of 1%, while default-free Japanese bonds that mature in 6 months have a nominal rate of .5%. In the spot exchange market, 1 yen equals $.0075. If interest rate parity holds, what is the 6-month forward exchange rate? 0.00734 0.00712 0.00776 0.00789 0.00752

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