Suppose the spot and three-month forward rates

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1. Suppose the spot and three-month forward rates for the yen are ¥79.10 and ¥78.56, respectively.

2. What would you estimate is the difference between the annual inflation rates of the United States and Japan? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131333506

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