CatherineC
Member
- Feb 16, 2008
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In the spot market, 1 U.S. dollar can be exchanged for 121 Japanese yen. In the 1-year forward market, 1 U.S. dollar can be exchanged for 125 Japanese yen. The 1-year, risk-free rate of interest is 5.2 percent in the United States. If interest rate parity holds, what is the yield today on 1-year, risk-free Japanese securities?
please show your solutions properly
)
i will give points to the person who will explain how he got his answer
please show your solutions properly
)i will give points to the person who will explain how he got his answer