Benefitting from the above rates

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We have the spot rate for Japanese Yens to be Y122 per $1. The nominal (riskless) rates in Japan and US are 0.04 and .07 respectively. The forward rate is Y116 per $1. What nominal (riskless) rate of return for $ investments can an US investor earn by benefitting from the above rates?

Reference no: EM132038453

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