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Back in 1985, When the Deutsche Mark Still Existed, the Yield

Question 29

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Back in 1985, when the Deutsche mark still existed, the yield curves were as follows:
 U.S.Deutsche JapaneseSwissBritish  Maturity  Dollar  Mark  Yen  Franc  Pound 12 months 8.314.817.194.3111.315 years 9.786.406.825.4010.907 years 10.166.757.005.4511.0010 years 10.336.807.335.7011.14 Spot Exchange  Rate (per US$) 2.50200.002.100.70\begin{array}{cccccc}&\text { U.S.}& \text {Deutsche}&\text { Japanese}& \text {Swiss}& \text {British }\\\text { Maturity } & \text { Dollar } & \text { Mark } & \text { Yen } &\text { Franc }& \text { Pound }\\ \hline 12 \text { months } & 8.31 & 4.81 & 7.19 & 4.31 & 11.31 \\5 \text { years } & 9.78 & 6.40 & 6.82 & 5.40 & 10.90 \\7 \text { years } & 10.16 & 6.75 & 7.00 & 5.45 & 11.00 \\10 \text { years } & 10.33 & 6.80 & 7.33 & 5.70 & 11.14 \\\text { Spot Exchange } & & & & \\\text { Rate (per US\$) } & & 2.50 & 200.00 & 2.10 & 0.70\end{array} Calculate the implied forward exchange rates, assuming that yields on zero-coupon bonds (European convention) for maturities of more than one year.

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