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Use the table containing economic, financial, and business indicators to answer the following questions. Using the spot rates and 3-month interest rates, calculate the 90-day forward rates for:

a. Japanese yen /U.S dollar exchange rate

b. Japanese yen/Australian dollar exchange rate

c. Australian dollar/U.S. dollar exchange rate

The table below contains economic, financial, and business indicators from 2015:

Forecasting the Pan-Pacific Pyramid: Australia, Japan, and the United States
											Industrial			Unemployment
		Gross Domestic Product									Production			Rate
						Forecast		Forecast
Country		Latest Qtr		Qtr		2015e		2016e			Recent Qtr			Latest
Australia		4.6	%	3.6	%	4.3	%	3.2	%		4.4	%		4.4	%
Japan		2.2	%	-1.1	%	2.3	%	1.6	%		4.3	%		3.8	%
United States		2.7	%	3.9	%	2.3	%	2.5	%		2.2	%		4.7	%
		Consumer Prices									Interest Rates
						Forecast					3-month			1-yr Govt
Country		Year Ago		Latest		2015e					Latest			Latest
Australia		4.1	%	2.5	%	2.5	%				6.81	%		6.23	%
Japan		0.6	%	-0.1	%	0.0	%				0.73	%		1.63	%
United States		2.4	%	2.4	%	2.6	%				4.91	%		4.52	%
		Trade
		Balance			Current Account						Current Units (per US$)
		Last 12 mos			Last 12 mos			Forecast 15
Country		(billion $)			(billion $)			(% of GDP)			Oct 17th			Year Ago
Australia		-12.8			-46.7			-5.6	%		1.12			1.37
Japan		98.5			197.1			4.5	%		118.00			120.00
United States		-810.4			-793.9			-5.4	%		1.00			1.00

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