The Nominal Yield On 6 Month T Bills Is 7 While Default Free Japanese Bonds That

The nominal yield on 6-month T-bills is 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 4.5%. In the spot exchange market, 1 yen equals $0.008. If interest rate parity holds, what is the 6-month forward exchange rate? Round the answer to five decimal places. Do not round intermediate calculations.

Prof. Angela

4.6/5

Calculate Price


Price (USD)
$