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About the interest rate parity

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Interest rate parity

The annual, riskless, nominal interest rate in the United states is 5%. The spot rate between the yen (YPY) and the dollar (USD) is USD 0.009791 / JPY and the 180-day forward rate between the yen and the dollar is USD 0.009932 / JPY. What is the annual, riskless, nominal interest rate in Japan if the interest rate parity holds?

Reference no: EM13849346

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