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The spot rate between the Japanese yen and the U.S. dollar is $106.70/$, while the one-year forward rate is 105.83/$. The oneyear risk-free rate in

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The spot rate between the Japanese yen and the U.S. dollar is $106.70/$, while the one-year forward rate is 105.83/$. The oneyear risk-free rate in the U.S. is 2.43 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan? Multiple Choice 307% 288%

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