In the spot exchange market 1 yen equals 0012 if interest, Financial Management

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In the spot exchange market 1 yen equals 0012 if interest

The nominal yield on 6-month T-bills is 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 4.5%. In the spot exchange market, 1 yen equals $0.012. If interest rate parity holds, what is the 6-month forward exchange rate? Round the answer to five decimal places. Do not round intermediate calculations.

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Financial Management: In the spot exchange market 1 yen equals 0012 if interest

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Financial Management: In the spot exchange market 1 yen equals 0012 if interest

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