Question: The current fiveyear JPY interest rate is 6 % per annum ( compounded annually ) . The fiveyear Eurodollar interest rate is 8 . 5

The current fiveyear JPY interest rate is 6% per annum (compounded annually). The fiveyear Eurodollar interest rate is 8.5%. What is the implied forward premium or discount of the yen (over the current spot rate) for a fiveyear forward contract, if IRP holds? (10%

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