Question: Please answer all the questions using the formulas in the picture when need it Suppose the exchange rate for the Japanese yen to the U.S.

Please answer all the questions using the formulas in the picture when need it

when need it Suppose the exchange rate for the Japanese yen to

Suppose the exchange rate for the Japanese yen to the U.S. dollar is currently 120= \$1. If the interest rate in the United States is 10% and the interest rate in Japan is 5%, what must the one-year forward rate be to prevent covered interest arbitrage? Show the formulas, do the math (indicate all operations until the final result), and indicate the units of measurement. PV=FV/(1+i)n NPV = PV (benefits) - PV (investment cost) WACC =(E/V)RE+(D/V)RD(1TC)

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