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The nominal yield on 6-month T-bills is 5%, while default free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In
The nominal yield on 6-month T-bills is 5%, while default free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals to $0.008. If interest rate parity holds, what is the six month forward exchange rate? Do not round intermediate calculations. Round your answer to five decimal places.
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