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 $3$ percent per six months.

Use the approximate interest rate parity condition to

answer this question.

a$.$ What must the six$-$month risk$-$free rate be in

Australia?

Note: Do not round intermediate calculations and

enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What must the six$-$month risk$-$free rate be in Japan?

Note: Do not round intermediate calculations and

enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What must the six$-$month risk$-$free rate be in Great

Britain?

Note: Do not round intermediate calculations and

enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.$