Currency per U.S. $ U.K. Pound 0.5135 6-months forward (£) 0.5204 Japan Yen 108.21 6-months forward (¥) 106.96 Switzerland Franc 1.0492 6-months forward (SF) 1.0478 Suppose interest rate...

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Finance

Currency per U.S. $
  U.K. Pound 0.5135
  6-months forward (£) 0.5204
  Japan Yen 108.21
  6-months forward (¥) 106.96
  Switzerland Franc 1.0492
  6-months forward (SF) 1.0478
Suppose interest rate parity holds, and the current six-monthrisk-free rate in the United States is 6 percent.
What must the six-month risk-free rate be in GreatBritain?
What must the six-month risk-free rate be in Japan?
What must the six-month risk-free rate be in Switzerland?

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Currency per U.S. $ U.K. Pound0.5135 6-months forward (£)0.5204 Japan Yen108.21 6-months forward (¥)106.96 Switzerland Franc1.0492 6-months forward (SF)1.0478 Suppose interest rate parity holds, and the current six-monthrisk-free rate in the United States is 6 percent.What must the six-month risk-free rate be in GreatBritain?What must the six-month risk-free rate be in Japan?What must the six-month risk-free rate be in Switzerland?

	Currency per U.S. $
U.K. Pound	0.5135
6-months forward (£)	0.5204
Japan Yen	108.21
6-months forward (¥)	106.96
Switzerland Franc	1.0492
6-months forward (SF)	1.0478