A japanese investor can earn a 1 percent annual interest, Financial Management

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A japanese investor can earn a 1 percent annual interest

A Japanese investor can earn a 1 percent annual interest rate in Japan or about 3.5 percent per year in the United States. The spot exchange rate is 101 yen to the dollar. According to the Interest Rate Parity Theorem, what should be the one-year forward rate between the U.S. dollar and the Japanese yen?

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Financial Management: A japanese investor can earn a 1 percent annual interest

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Financial Management: A japanese investor can earn a 1 percent annual interest

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