Yield on 180-day risk-free securities in the united states

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Quantitative Problem:

Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.007, while in the 180-day forward market 1 Japanese yen = $0.0071. 180-day risk-free securities yield 1.45% in Japan. What is the yield on 180-day risk-free securities in the United States? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132594600

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