Consider some data drawn from Exhibit 5. The 1-year rates can be viewed as spot interest rates, and the 2-year rates are yields to maturity in annualized percent. The spot exchange rate is ¥132.192/£....

Consider some data drawn from Exhibit 5. The 1-year rates can be viewed as spot interest rates, and the 2-year rates are yields to maturity in annualized percent. The spot exchange rate is ¥132.192/£.