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Use the information below to answer the following questions.Currency per U.S. $ Australia dollar1.2374 6-months forward1.2359 Japan Yen100.3000 6-months forward100.0800 U.K. Pound.6795 6-months forward.6778Suppose interest

Use the information below to answer the following questions.Currency per U.S. $Australia dollar1.23746-months forward1.2359Japan Yen100.30006-months forward100.0800U.K. Pound.67956-months forward.6778Suppose 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 parity condition to answer this question.

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

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

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

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