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You observe the following current rates: exchange rate: $ 0 . 0 1 / yen . Annual interest rate on 9 0 - day U

You observe the following current rates: exchange rate: $0.01/yen. Annual interest rate on 90-day U.S. dollardenominated bonds: 4%. Annual interest rate on 90-day yen-denominated bonds: 4%. a. If uncovered interest parity holds, what spot exchange rate do investors expect to exist in 90 days?

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