Complete your Week 4 Assignment, “Interest Rate Parity.”

TheCurrentExchangeRatebetweenJapanandU.K.isOneBritishPoundEquals150JapaneseYen.TheoneyearAnnualInterestRateinJapanis1%,whiletheAnnualInterestRateinU.K.is4%.

Giventhis,whatwouldyouexpecttheForwardRatetobebetweenJapaneseYenandBritish Pounds,oneyearfromnow?Explainyourstepsintheworkspaceonthenextpage.