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Use the information below to answer the following questions. Currency per U.S. Australia dollar Japan yen U.K. pound 6-months forward 6-months forward 6-months forward 1.2387

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Use the information below to answer the following questions. Currency per U.S. Australia dollar Japan yen U.K. pound 6-months forward 6-months forward 6-months forward 1.2387 1.2346 100.4300 99.9500 6795 6778 Suppose interest rate parity holds, and the current risk-free rate in the United States is 4 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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