What is the 6-month forward exchange rate

Reference no: EM13290263

Six month T-bills have a nominal rate of 7%, while the default-free Japanese bonds that mature in six months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month forward exchange rate?

Reference no: EM13290263

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