The annual yield on government$-$issued bonds in Japanese Yen is $5\%.$ The analyst say that Yen will depreciate by $2\%$ in the following year. If the Fisher Effect holds, what should be the yield on the one$-$year US T$-$Bills?

According to the Fisher Effect, the relation between exchange rate and interest rates should be as follows.

$e_f=\frac{1+i_h}{1+i_f}-1$

where $e_f$ is the price of foreign currency in the units of local currency, $i_h$ is local interest rate, and $i_f$ is foreign interest rate.