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    Exam 7: International Arbitrage and Interest Rate Parity
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    The Interest Rate on Yen Is 7 Percent
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The Interest Rate on Yen Is 7 Percent

Question 16

Question 16

True/False

The interest rate on yen is 7 percent. The interest rate in the United States is 9 percent. The yen's forward rate should exhibit a premium of about 2 percent.

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