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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 = $0.009144, while in the 90-day forward market 1 Japanese yen = $0.009184. In Japan, 90-day risk-free securities yield 2%.

What is the yield on 90-day risk-free securities in the United States?

Reference no: EM133060011

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