# Spot Rates Assignment | Homework For You |

QUESTION 8 Use the following information to answer the next two questions A Japanese investor notices the expected one year inflation rate in Japan and Mexico is 5% and 7 %. respectively. The current spot rates for yen and pesos are as follows \$.15/Mex\$, X111.11/\$ What should be the value of pesos in terms of yen at the end of the year according to relative PPP?
O 16.9842 O 16.3548 O 0611 O 0589 6.66667
QUESTION 9 If the spot rale is 16.5/MexS, the yen has depreciated in real terms according to relative Ppp,
O True O False.  Get Finance homework help today
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## Spot Rates Assignment | Homework For You |

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# Spot Rates Assignment | Homework For You |

QUESTION 8 Use the following information to answer the next two questions A Japanese investor notices the expected one year inflation rate in Japan and Mexico is 5% and 7 %. respectively. The current spot rates for yen and pesos are as follows \$.15/Mex\$, X111.11/\$ What should be the value of pesos in terms of yen at the end of the year according to relative PPP?
O 16.9842 O 16.3548 O 0611 O 0589 6.66667
QUESTION 9 If the spot rale is 16.5/MexS, the yen has depreciated in real terms according to relative Ppp,
O True O False.  Get Finance homework help today