In the spot exchange market 1 yen equals 0008 if interest
One-year T-bills have a rate of 3%, while one-year default free Japanese securities have a rate of 1%. In the spot exchange market, 1 yen equals $0.008. If interest rate parity holds, what is the 1-year forward exchange rate? Show all work.
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one-year t-bills have a rate of 3 while one-year default free japanese securities have a rate of 1 in the spot exchange
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