Interest rates annualized in japan


Problem:

Suppose that six-month interest rates (annualized) in Japan and the United States are 7 percent and 9 percent, respectively. If the spot rate is ¥142:$1 and the ninety-day forward rate is ¥139:$1 and the 180 day forward rate is : ¥152:$1

Which would be the best to invest in, where would be the best to borrow from?

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Finance Basics: Interest rates annualized in japan
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