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    International Financial Management Study Set 1
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    Exam 7: International Arbitrage and Interest Rate Parity
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    The Interest Rate on Yen Is 7
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The Interest Rate on Yen Is 7

Question 81

Question 81

True/False

The interest rate on yen is 7%. The interest rate in the U.S. is 9%. The yen's forward rate should exhibit a premium of about 2%.

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