Use the information below to answer the following

questions.

Reterence

Suppose Interest rate parity holds, and the current sk$-$month risk$-$free rate in the United

States is $22$ percent.

What must the sk$-$month rlsk$-$free rate be in Great Britaln?

Great Britain risk$-$free rate

$3\mathrm{.}54\%$

$3\mathrm{.}63\%$

$0\mathrm{.}87\%$

$4\mathrm{.}69\%$

$3\mathrm{.}40\%$

What must the sk$-$month risk$-$free rate be in Japan?

Japanese risk$-$free rate

$1\mathrm{.}04\%$

$1\mathrm{.}02\%$

$3\mathrm{.}36\%$

$1\mathrm{.}11\%$

What must the sk$-$month rlsk$-$free rate be in Switzerland?

Suiss risk$-$free rate