Question: Use Table 18.2 to answer the following questions : Suppose interest rate parity holds, and the current risk-free rate in the United States is 2.1

Use Table 18.2 to answer the following questions : Suppose interest

Use Table 18.2 to answer the following questions : Suppose interest rate parity holds, and the current risk-free rate in the United States is 2.1 percent per six months. What must the six-month risk-free be in Australia? In Japan? In Great Britain?

Exchange Rates: May 5 on Sources: www.wsj.com and www.barchartcom, May 6, 2021

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