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You are attempting to determine whether the US/Japan financial conditions are at parity. The following...

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You are attempting to determine whether the US/Japan financial conditions are at parity. The following information is available to you: Current Spot Rate = JPY 89.00/$ 1 Year Forward Rate = JPY 84.90/$ InflationJapan =1.10% InflationUS =5.90% InterestRateJapan =4.70% InterestRateUS =9.50% Using an International Fisher Effect approach which uses interest rate differentials, calculate what the 1 year forward rate should be

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