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The Current Spot Rate Is ¥109

Question 12

Multiple Choice

The current spot rate is ¥109.5450 per U.S. dollar , and the 1-year forward rate is The current spot rate is ¥109.5450 per U.S. dollar , and the 1-year forward rate is 1 per dollar. If the 1-year Treasury rate is 2.25%, what do you expect the 1-year Japanese central Bank rate to be? Round your answer to the nearest tenth of a percent. A) 9.8% B) 1.8% C) 0.4% D) 1.0% 1 per dollar. If the 1-year Treasury rate is 2.25%, what do you expect the 1-year Japanese central
Bank rate to be? Round your answer to the nearest tenth of a percent.


A) 9.8%
B) 1.8%
C) 0.4%
D) 1.0%

Correct Answer:

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