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
WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Describe the meaning of the fixed production overhead variances calculated under the standard absorption costing system and talk about their usefulness to the management of X Ltd.

(a) Describe briefly how the following are used in the accounting for labour: (i)   time sheets (ii)   job cards. (b) The following details relate to the labour in a produ

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Cash is the other form of fund although in a narrow sense, this refers to a supply which can be drawn upon as per to the need. Here the term cash involves both cash and cash equiva

A job order cost sheet for Lowery Company is shown below Date Direct Materials Direct Labor Manufacturing overhead Beg Bal Jan 1 5,000 6,000 5,100 8 6,000 12 8,000 6,400 25 2,000 2


Reasons for Cost Allocation 1. To provide comparison along with externally provided services:  It helps in assessing where to continue the contact or service outsiders. 2.

Distribution and Selling Cost Budget This is the forecast of all costs incurred in distributing and selling the company's product throughout the budget period. This is closel

Asian Ltd makes three types of gold watch - the Diva (D), the Classic (C) and the Poser (P). A traditional product costing system is used at present; although an activity based cos