Question: Suppose that the current exchange rate between the yon and the dollar is `109 = $1 and that the interest rate is 4% on a

Suppose that the current exchange rate between the yon and the dollar is `109 = $1 and that the interest rate is 4% on a one-year bond in Japan and 3% on a comparable bond in the United States. According to the Interest-rate parity condition, what do investors expect the exchange rate between the yen and the dollar to be in one year? The exchange rate will be v = $1. (Round your response to two decimal places)

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