1. A portfolio manager plans to buy three-month T-bills with the total face value of $1,000,000 in one month. The current price for three-month T-bills is $988,520. What is the fair forward price if the current effective annual risk-free rate over one month is 4%?
2. If the cost of the yen per dollar changes from 100 to 110 yen per dollar. How much yen appreciates/depreciates?