The spot rate (current rate) for Japanese yen is 120 yen to the dollar, whereas the one-year

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The spot rate (current rate) for Japanese yen is 120 yen to the dollar, whereas the one-year futures rate is 115. If one-year interest rates in Japan are 4%, what is the implied one-year interest rate in the United States, assuming interest rate parity?
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Modern Portfolio Theory and Investment Analysis

ISBN: 978-1118469941

9th edition

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

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