Difference between japanese and us interest rates

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Reference no: EM131278356

1. What factors might lead to persistent covered interest arbitrage opportunities among countries?-

2. In early 1989, Japanese interest rates were about 4 percentage points below U.S. rates. The wide difference between Japanese and U.S. interest rates prompted some U.S. real estate developers to borrow in yen to finance their projects. Comment on this strategy.

Reference no: EM131278356

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