ReneeK5152 ReneeK5152
  • 14-03-2024
  • Mathematics
contestada

Suppose that the current exchange rate between the yen and the dollar is yen 100 = $1 and that the interest rate is 4% on a one-year bond in Japan and 3% on a comparable bond in the United States. According to the interest-rate parity condition, what do investors expect the exchange rate between the yen and the dollar to be in one year?

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