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Suppose that you are the treasurer of IBM with an extra U.S. $1,000,000 to invest for six months. You are considering the purchase of U.S. T-bills that yield 1.810% (that's a six month rate, not an annual rate by the way) and have a maturity of 26 weeks. The spot exchange rate is $1.00 = ¥100, and the six month forward rate is $1.00 = ¥110. What must the interest rate in Japan (on an investment of comparable risk) be before you are willing to consider investing there for six months?
Detachment
Extreme introversion.
Dependent Personality Disorder
A mental health condition characterized by a pervasive and excessive need to be taken care of, leading to submissive and clinging behavior and fears of separation.
Neuroticism
A personality trait characterized by emotional instability, anxiety, moodiness, and a tendency to experience negative emotions.
Agreeableness
A personality trait characterized by warmth, kindness, empathy, and a willingness to cooperate with others.
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