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Use the information below to answer the following questions Currency per U.S. S Australia dollar Japan Yen U.K. Pound 6-months forward 6-months forward 6-months forward
Use the information below to answer the following questions Currency per U.S. S Australia dollar Japan Yen U.K. Pound 6-months forward 6-months forward 6-months forward 1.2380 1.2353 100.3600 100.0200 6789 6784 Suppose interest rate parity holds, and the current risk-free rate in the United States is 5 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
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