What is the yield on 90-day risk-free securities

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INTEREST RATE PARITY

Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.01444, while in the 90-day forward market 1 Japanese yen = $0.01446. In Japan, 90-day risk-free securities yield 2.5%. What is the yield on 90-day risk-free securities in the United States? Round your answer to two decimal places. Do not round intermediate calculations.

Reference no: EM132413454

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