Country would the treasurer want to invest the company funds

Assignment Help Financial Management

Reference no: EM131893647

The treasurer of a major UK firm has £300 million to invest for 3 months. The deposit interest rate offer by the HSBC bank in the UK is 0.9027% (for 3 months). The same interest rate offered by Bendigo bank in Australia is 1.3561% (for 3 months). Spot exchange rate is A$0.59 (for £l), and the 3-month forward rate is A$0.61. Ignoring transaction costs, in which country would the treasurer want to invest the company’s funds? And why? [Does this have to calculate using IRP?]

Reference no: EM131893647

Questions Cloud

Discuss the collaboration process with the child clients : Case study: Sara is an 11-year-old, sixth grader at a new middle school. Her teachers describe her as disruptive and not listening by making careless errors.

What is the angular speed of the resulting combination : What is the angular speed of the resulting combination? (Hint: think about momentum, before, and then after)

Subtract the clamp position : To calculate this distance, subtract the clamp position (20 cm) from the photogate position. Express your answer in meters.

What is the frequency of the photon : A hydrogen atom has its electron in the n = 2 state.

Country would the treasurer want to invest the company funds : Ignoring transaction costs, in which country would the treasurer want to invest the company’s funds? And why?

Find the de broglie wavelength of the electron : Find the de Broglie wavelength of the electron under these circumstances.

Write story that is really meaningful and has point in life : Write a story that is really meaningful and has a point in life. Write three pages at least 2 and half pages. And please do it in paragraphs. MLA FORMAT.

Minimum annual cash inflow that firm should accept : With the given life, initial investment, and cost of capital, what is the minimum annual cash inflow that the firm should accept?

What is the energy of the emitted photon : A hydrogen atom initially in the n = 2 level emits a photon and ends up in the ground state.

User Account

All Pages