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Interest Rate Parity Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.009 dollar. In Japan, 90-day risk-free securities yield 4 %. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places. 1.61 %

Interest Rate Parity Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.009 dollar. In Japan, 90-day risk-free securities yield 4 %. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places. 1.61 %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Interest Rate Parity Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.009 dollar. In Japan, 90-day risk-free securities yield 4%. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places. 1.61 %
Transcribed Image Text:Interest Rate Parity Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen equals 0.009 dollar. In Japan, 90-day risk-free securities yield 4%. What is the yield on 90-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places. 1.61 %
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