Show how the equation in uncovered interest parity is, Business Economics

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Show how the equation in uncovered interest parity is

Uncovered Interest Parity

Show how the equation in uncovered interest parity is derived. Explain.

Assume the expected $/Yen exchange rate is 0.01 dollars per yen. Further assume that the US interest rate is 8% and the Japanese interest rate is 3%. According to uncovered interest parity, what would be the current $/Yen exchange rate? Show work.

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Business Economics: Show how the equation in uncovered interest parity is

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Business Economics: Show how the equation in uncovered interest parity is

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