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Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2379 6-months forward 1.2354 Japan yen 100.3500 6-months forward 100.0300

Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2379 6-months forward 1.2354 Japan yen 100.3500 6-months forward 100.0300 U.K. pound .6790 6-months forward .6783 Suppose interest rate parity holds, and the current risk-free rate in the United States is 3 percent per six months. Use the approximate interest rate parity condition to answer this question. What must the six-month risk-free rate be in Australia? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate % What must the six-month risk-free rate be in Japan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate % What must the six-month risk-free rate be in Great Britain? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate

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