Solved: What is the yield on 90-day risk-free securities, Finance Basics

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What is the yield on 90-day risk-free securities

Question:

Assume that interest rate parity holds. In both the spot market and the 90-day forward market 1 Japanese yen = 0.0086 dollar. And 90-day risk-free securities yield 4.6% in Japan. What is the yield on 90-day risk-free securities in the United States?

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Finance Basics: What is the yield on 90-day risk-free securities

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Finance Basics: What is the yield on 90-day risk-free securities

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