The spot rate between the Japanese yen and the U.S. dollar is 106.44/$, while the one-year forward rate is 105.63/$. The one-year risk-free rate in the U.S. is 2.35 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan?

MC algo 21-21 Interest Rate Parity The spot rate between the Japanese yen and the U.S. dollar is #106.44/$, while the one-year forward rate is #105.63/$. The one-year risk-free rate in the U.S.is 2.35 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan? Multiple Choice O 3.13% O 1.40% O 1.57% (0) 2.94% O O 2.74%