Use the information below to answer the following questions. (Enter your answer as directed, but do not round intermediate calculations.)

	Currency per U.S. $
Australia dollar	.9578
6-months forward	.9763
Japan Yen	80.89
6-months forward	80.70
U.K. Pound	.6265
6-months forward	.6273

Suppose interest rate parity holds, and the current risk-free rate in the United States is 1.2 percent per six months.

Requirement 1:

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

Risk-free rate

%