Suppose that the spot exchange rate for Japanese yen is ¥122/$ and that the one-year forward exchange rate for Japanese yen is ¥130/$. The one-year interest rate in the United States is 5%. What is the interest rate in Japan? 3. Due to the integrated nature of their capital markets, investors in both the U.S. and the U.K. require the same expected real interest rate of 3%. Expected annual inflation is 2 percent in the U.S. and 5% in the U.K. The spot exchange rate is currently £1.00=$1.80. What is the forward dollar-pound exchange rate for one-year maturity?