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You can buy or sell the yen spot at 107 to the dollar. You can buy or sell the yen 1 year forward at 110
You can buy or sell the yen spot at 107 to the dollar. You can buy or sell the yen 1 year forward at 110 to the dollar. If U.S. annual interest rates are 5%, what must be the one year Japanese interest rate if interest rate parity holds?
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