Does interest rate parity hold

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Suppose that 1 year interest rates are 9% in the US and 3% in Japan. Say the spot rate is $0.015/yen and the one-year forward rate is $0.0152/yen. ?Does Interest Rate Parity hold, and if not where would you borrow and where would you invest? ?Assuming no transaction costs, what would be your arbitrage profit per $

Reference no: EM131558681

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