What would be annual return on a similar japanese investment

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Reference no: EM131316756

Suppose the spot exchange rate equals ¥100/$, and the six-month forward rate equals ¥101/$.

An investor can purchase a U.S. T-bill that matures in six months and earns an annual rate of return of 3 percent. What would be the annual return on a similar Japanese investment?

Reference no: EM131316756

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