Use the information below to answer the following questions.

	Currency per U.S. $
Australia dollar	1.2373
6-months forward	1.2360
Japan Yen	100.2900
6-months forward	100.0900
U.K. Pound	.6796
6-months forward	.6777

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 equation to answer the following questions.

Requirement 1:

What must the six-month risk-free rate be in Australia? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate

%

Requirement 2:

What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate

%

Requirement 3:

What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate

%