Interest rate parity six-month t-bills have a nominal rate


INTEREST RATE PARITY Six-month T-bills have a nominal rate of 2%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 1.25%. In the spot exchange market, 1 yen equals $0.0081. If interest rtae parity holds, what is the 6-month forward exchanged?

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Financial Management: Interest rate parity six-month t-bills have a nominal rate
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