Investing 1000000 for six months. planning purchasing us t, Ask an Expert

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Investing $1,000,000 for six months. Considering purchasing US T Bills at 1.810% (6 month rate, not annual), matures in 26 weeks. Spot Exchange Rate is $1.00/Yen100, six month forward rate is $1.00/Yes110, Interest rate in Japan is 15%.

I think I should Take the $1m, translate into yet at spot, invest in Japan, hedge with a forward contract because it doesn't mature to 26 weeks and I want to protect my investment with a interest in Japan at 13%.

I really think the interest rate in Japan should be 7.45% before I consider the investment.

Not sure if I'm on the right track.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9283859

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