PPP Assignment.docx - USD/JPY Change...

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USD/JPY % Change = (1+(0.02577-0.01)) / (1+(-0.00118-0.01)) - 1 = 2.73% JPY appreciation 1 Year Japan yield: -0.118 Yen Japan Expected inflation rate: -0.118- 1 (real interest rate) =- 1.118 (expected inflation)
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