Assume that interest rate parity holds

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Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.014, while in the 180-day forward market 1 Japanese yen = $0.0148. 180-day risk-free securities yield 1.75% in Japan. What is the yield on 180-day risk-free securities in the United States? Round your answer to 2 decimal places. Do not round intermediate calculations.

Reference no: EM131564552

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