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Assume that interest rate parity holds. In both the spot market and the 90-day forward market 1 Japanese yen equals 0.0086 dollar. In Japan, 90-day risk-free securities yield 4.9%. What is the yield on 90-day risk-free securities in the United States? Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92052984

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