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Problem 6-3 (algorithmic) Question Help Derek Tosh and Yen-Dollar Parity. Derek Tosh is attempting to...

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Problem 6-3 (algorithmic) Question Help Derek Tosh and Yen-Dollar Parity. Derek Tosh is attempting to determine whether US/Japanese financial conditions are at parity. The current spot rate is a fat ve9 00s, while the 360-day f vard rate is s84 90s. Forecast inflation is 1 103% for Japan, and 5 897% for the us. The 360-day eur yen deposit ate is 4 696% ar deposit rate is 9 497%. and the 360-day b. Find the forecasted change in the Japanese yen/U.S. dollar(S) exchange rate one year from now a. Calculate whether international parity conditions hold between Japan and the United States The forecast difference in rates of inflation is 1%us higher than Japan) (Round to one al parity conditions hold between Japan and the United States dec nal place.)

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