The spot rate for the Japanese yen currently is 123 per $1. The one-year forward rate is 122 per $1. A risk-free asset in Japan is currently earning 7 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free U.S. security?

7.88 percent

7.95 percent

6.20 percent

6.13 percent

7.81 percent