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

Ask an Expert

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

Write your message here..

Related Questions

Idle capacity, How does idel capacity effect cost behavior patterns and fac... How does idel capacity effect cost behavior patterns and factory overhead application methods

Tracking overhead, Tracking Overhead Jack would have a many task at han... Tracking Overhead Jack would have a many task at hand if he tried to daily trace all such items of overhead. For example: x     How difficult it would  become to track the "

Definition of variance analysis, Definition of Variance Analysis Varia... Definition of Variance Analysis Variance analysis can merely be defined like the process of analyzing the difference between the actual cost and the standard cost this variati

Cost of airconditioning plant, Devprop Leasing Co.is an industrial property... Devprop Leasing Co.is an industrial property development company, that typically develops warehouse and industrial complexes in new or underdeveloped areas, operates these complexe

The purposes of cost accounting information, what are the purposes of cost ... what are the purposes of cost accounting information

Prepare a statement of cash flows, Bickering Ltd Income Stateme... Bickering Ltd Income Statement for the year ended 30 June 2012   Sales (credit)                                                                           636,10

Cost estimation methods, using the high low method how do i calculate the c... 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

Prepare a cash flow forecast, 1.  Prepare a cash flow forecast for the prop... 1.  Prepare a cash flow forecast for the proposal to launch SafeCus in 2010 for a three-year period from 1 January 2010 using the data in the body of the Case Study and discount at

Long - term capital loss, The Smiths have a long-term capital loss carryove... The Smiths have a long-term capital loss carryover of $10,000 from 2010. On May 9, 2007, David's uncle, Joe, gave him the family antique gun collection. Based on family records

Prepare a flexible overhead budget, Under a contract with the provincial go... Under a contract with the provincial government, ChemLabs Inc. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Co