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What is the 6-month forward exchange rate

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Reference no: EM133060013

INTEREST RATE PARITY:

Six-month T-bills have a nominal rate of 2%, while default free Japanese bonds that mature in 6 months have a nominal rate of 1.25%. In the spot exchange market, 1 yen equals to $0.0091. If interest rate parity holds, what is the 6-month forward exchange rate?

Reference no: EM133060013

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