Understanding and applying the concepts


Assume that interest rate parity holds. In both the spot market and the 90-day forward market. I Japanese yen equals 0.0095 dollar. In Janpan, the 90day risk free securities yield 4.4%. What is the yield on 90-day risk fee securities in the United States? Round to two decimal places. Please include spreadsheet in solution, it is helpful to understanding and applying the concepts.

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Finance Basics: Understanding and applying the concepts
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