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The spot exchange rate for JPY is 1 1 9 . 9 1 4 ( JPY / USD ) , and the one - year

The spot exchange rate for JPY is 119.914(JPY/USD), and the one-year forward rate is 118.908(JPY/USD). If the annual interest rate on USD certificates of deposit is 5.3%, what annual interest rate would you expect on JPY certificates of deposit?
Enter your answer as a decimal rounded to the nearest fourth decimal place. For example, enter 12.345% as .0123.

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