Business, 16.04.2020 22:48 queeneaf

Use the information below to answer the following questions. Currency per U. S. $ Australia dollar 1.2379 6-months forward 1.2354 Japan Yen 100.3500 6-months forward 100.0300 U. K. Pound .6790 6-months forward .6783 Suppose interest rate parity holds, and the current risk-free rate in the United States is 3 percent per six months. Use the approximate interest rate parity equation to answer the following questions. Requirement 1: What must the six-month risk-free rate be in Australia? (Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Risk-free rate % Requirement 2: What must the six-month risk-free rate be in Japan? (Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Risk-free rate % Requirement 3: What must the six-month risk-free rate be in Great Britain? (Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Risk-free rate %

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Use the information below to answer the following questions. Currency per U. S. $ Australia dollar 1...

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