What is risk premium and expected change in the spot rate

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Suppose that the current spot rate between Japan and the US is 4 yen per dollar, the forward rate is 4.04 yen per dollar, and the expected future spot rate is 4.06 yen per dollar. What is the risk premium, expected change in the spot rate, the forward discount, and the expected return on Japanese bonds is the interest rates are 5% in the US and 3% in Japan?

Reference no: EM13242641

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