Given the following data: R = $1.00/Y100 F = $1.00/Y95 i u.s. = 5%. If the interest parity condition is expected to hold, interest rates in Japan (Japan) should equal % (enter your answer as a percentage rounded to two decimal places).

Given the following data: R = $1.00/Y100 F = $1.00/Y95 i u.s. = 5%. If the interest parity condition is expected to hold, interest rates in Japan (Japan) should equal % (enter your answer as a percentage rounded to two decimal places).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 12E

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Question

Given the following data:

R = $1.00/Y100 F = $1.00/Y95

i u.s. = 5%.

If the interest parity condition is expected to hold, interest rates in Japan (Japan) should equal % (enter your answer as a percentage rounded to two decimal places).

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