Find what is the six-month forward exchange rate

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Problem 1: If the Canadian dollar depreciates against the US dollar, can a US dollar buy more or fewer Canadian dollars as a result?

Problem 2: Six-month T-bills have a nominal rate of 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, one yen equals $0.012. If interest rate parity holds, what is the 6-month forward exchange rate?

Reference no: EM132965113

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