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
Question: Yamba Home Products is just beginning its fourth quarter, in which peak sales occur. The company has requested a $12,000, 90-day loan from its bank to help meet cash re

Example of Over and under absorption of production overhead costs By employing data from diagram assume such the production overhead absorption rate was computed where an acti

1. Why does rent control result in a shortage of rental units. 2. How does price elasticity of demand affect how much of a tax is passed on to the consumer and how much is absor

using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000

Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p

On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years. The lease contract calls for annual (prepaid) rental payments of $100,000 on each July 1

Determine the  factors  that distinguish profit  calculated according  to  (a) marginal  costing and  (b) absorption costing principles.

Winston Duff is planning to borrow $225,000 to purchase a new home. Mr. Duff is considering two fixed-rate financing alternatives offered by Horsepen Creek State Bank. The first

a company wants to buy a new machine to replace on which is having frequent breakdown.............. .......... c-the models suitable for different levels for demand of product?

What are the benefitss and drawbacks of standard costing?