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The spot rate between the Japanese yen and the U.S. dollar is 108.91/$, while the one-year forward rate is 108.98/$. The one-year risk-free rate in

The spot rate between the Japanese yen and the U.S. dollar is 108.91/$, while the one-year forward rate is 108.98/$. The one-year risk-free rate in the U.S. is 3.11 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan?

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