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The current six-year yen and dollar interest rates are 6.5% and 12% per annum, respectively. What is the implied forward premium or discount of the

The current six-year yen and dollar interest rates are 6.5% and 12% per annum, respectively. What is the implied forward premium or discount of the yen (over the current spot rate for a six-year forward contract)?

A. 26.08% discount

B. 4.91% discount

C. 5.16% premium

D. 35.27% premium

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