The current five year euro yen rate is 6% per annum (compounded annually). the five year eurodollar rate is 8.5%. what is the im

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user100 [1]

3 years ago

14

The current five year euro yen rate is 6% per annum (compounded annually). the five year eurodollar rate is 8.5%. what is the im

plied forward premium or discount of the yen (over the current spot rate) for a five year forward contract?

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1 answer:

Arturiano [62] · Answer 1 · 2022-04-10T05:33:55+03:00

Arturiano [62]3 years ago

3 0

<span>The implied forward premium or discount of the yen (over the current spot rate) for a five year forward contract would be 12.36 percent premium.</span>