Calculate the nominal interest rate, Cost Accounting

A 1- year Canadian bond with a face value of 5000 can be purchased at 4800.

a) Calculate the nominal interest rate in Canada.

b) If the Canadian dollar is expected to depreciate against the US dollar by 1 % over the next year, calculate the current nominal interest rate in the US.

c) How much could an American bond with the same Face value as the Canadian bond sell in the market?

 

Posted Date: 3/19/2013 5:08:12 AM | Location : United States







Related Discussions:- Calculate the nominal interest rate, Assignment Help, Ask Question on Calculate the nominal interest rate, Get Answer, Expert's Help, Calculate the nominal interest rate Discussions

Write discussion on Calculate the nominal interest rate
Your posts are moderated
Related Questions
Opportunity Costs Are Relevant Costs Opportunity cost introduces an additional concept that is not available like part of normal cost analysis in the accounting record system.

The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) m

CVP for Multiple Products What number of businesses sells only one manufactured goods? The reality is that firms usually give us the diverse product line, and the individual pr

METHODS OF COSTING : 1. Job costing :  Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batch

Product Versus Period Costs Another way to look at manufacturing costs is to think of them as attaching to a product. In other words, goods result from the manufacturing proces

Determine the additional cash a company could obtain from its working capital accounts if it can improve its average collection period by three days and inventory turnover by 0.5 t

Developing and Insight into Labour and Material Variance The calculation of labour and material variances is not sufficient; we require knowing how the variance could have typ

What are the reasons of preparing income statement?

Does it make sense for PP's management to use so many discount rates in its evaluation? Explain. What additional information would you like to have to make a more informed decis

Matheson Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many m