Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.009144, while in

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Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.009144, while in the 90-day forward market 1 Japanese yen=$0.009184. In Japan, 90-day risk-free securities yield 2%. What is the yield on 90-day risk free securities in the United States?

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Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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