Interest parity condition is expected to hold

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Reference no: EM13893203

Given the following data: Et = ¥125 = $1.00; Et+1 = ¥100 = $1.00; US interest rate = 20%. If the interest parity condition is expected to hold, interest rates in Japan should approximately equal (percentage)

a. 10

b. 3.67

c. -1.04

d. 0

e. 7.5

Reference no: EM13893203

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