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Use the information below to answer the following questions. Suppose interest rate parity holds, and the current risk-free rate in the United States is 5
Use the information below to answer the following questions. 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 panty equation to answer the following questions. 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.) What must the six-month risk-free rate be in Japan? (Enter your answer ns a percent rounded to 2 decimal places, e.g., 32.16.) 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.)
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