-Suppose that S = ¥180/$. The annualized risk-free rates are 4.6% and 2.75% in Japan and the U.S., respectively. Find the expected currency movement over the next 3 years. Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th decimal points.

7-Suppose that S = ¥180/$. The annualized risk-free rates are 4.6% and 2.75% in Japan and the U.S., respectively. The annualized inflation rate is 2% in Japan. Find the exact real interest rate in Japan and the U.S. according to the international Fisher relation. Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th decimal points.

8-Assume the following information:

U.S. investors have $1,000,000 to invest:

1-year deposit rate offered on U.S. dollars = 12%

1-year deposit rate offered on Singapore dollars = 10%

1-year forward rate of Singapore dollars = $.412

Spot rate of Singapore dollar = $.400

Interest rate parity doesn’t exist. If U.S. investors engage in covered interest arbitrage, what yield will they earn? Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th percentage point. For example, write 12.89 for 12.89%.

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