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10 November, 20:58

The current five year euro yen rate is 6% per annum (compounded annually). the five year eurodollar rate is 8.5%. what is the implied forward premium or discount of the yen (over the current spot rate) for a five year forward contract?

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  1. 10 November, 22:08
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    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.
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