Use the information below to answer the following questions.

	Currency per U.S. $
Australia dollar	1.2375
6-months forward	1.2358
Japan Yen	100.3100
6-months forward	100.0700
U.K. Pound	.6794
6-months forward	.6779

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 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

%