Suppose the interest rate in Japan is 9 % , and inflation is expected to be 4

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Question:

Suppose the interest rate in Japan is

9 %,

and inflation is expected to be

4 % .

Meanwhile, the expected inflation in Singapore is

11 %,

and the Australian interest rate is

14 % .

To the nearest whole number, what is the best estimate of the one

-

year forward exchange premium

(

discount

)

at which the Australian dollar would be trading at relative to the Singapore dollar?

INSTRUCTIONS:

1 .

Be precise in the formulas you use.

2 .

Please input your final answer without percentage signs

(%) .

Posted Date: May 19, 2024 02:15 AM

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Suppose the interest rate in Japan is 9 % , and inflation is expected to be 4

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