Question: The current five-year JPY interest rate is 6% per annum (compounded annually). The five-year Eurodollar interest rate is 8.5%. What is the implied forward premium

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

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