Reply to thread

Message

<blockquote data-quote="CatherineC" data-source="post: 2679663" data-attributes="member: 93014">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.&nbsp; The 1-year, risk-free rate of interest is 5.2 percent in the United States.&nbsp; If interest rate parity holds, what is the yield today on 1-year, risk-free Japanese securities?please show your solutions properly <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":)" title="Smile&nbsp; &nbsp; :)"&nbsp; data-smilie="1"data-shortname=":)" />)i will give points to the person who will explain how he got his answer <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":)" title="Smile&nbsp; &nbsp; :)"&nbsp; data-smilie="1"data-shortname=":)" /></blockquote>

[QUOTE="CatherineC, post: 2679663, member: 93014"] 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 :) [/QUOTE]

Name

Verification

Loading…