What is the annualized rate of return to the swiss investor

Assignment Help Finance Basics
Reference no: EM13305403

Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,000. The exchange rate at that time was 1.255 Swiss francs per dollar. Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor?

a)20.96%
b)13.17%
c)18.89%
d)17.33%
e)20.27%

 

Reference no: EM13305403

Questions Cloud

Obtain the moment of inertia of the wheel : A rope is wrapped around a wheel of radius R=2.0 meters. The wheel is mounted with frictionless bearings on an axle through its center. What is the moment of inertia of the wheel
What effective annual interest rate will blenman end up : If the exchange rate remains at 5.10 pesos per dollar through the end of the loan period, what effective annual interest rate will Blenman end up paying on the loan?
How many bright fringes are visible on the screen : Coherent light of wavelength 540.4 nm is sent through two parallel slits in an opaque material. Each slit is 0.700 µm wide. How many bright fringes are visible on the screen
Austin enterprises makes and sells three types of dress shir : Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow:
What is the annualized rate of return to the swiss investor : Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor?
How old are they when john returns : John takes off for Vega (d ~ 25LY) traveling at 99.99% the speed of light. As soon as he arives, the ship turns around, How old are they when John returns
Describe the key elements of an information system for an mc : Describe the key elements of an information system for an MCO. What elements are different than for a physician office or group?
Determine how much money the homeowner would have saved : If t his house were heated instead by a heat pump that has an average COP of 2.4, determine how much money the homeowner would have saved that month. Assume the price of electric power is $0.085 per kW - hr.
Original issuance of the convertible debentures : 1. Prepare the journal entry to record the original issuance of the convertible debentures.

Reviews

Write a Review

Finance Basics Questions & Answers

  How information systems support business process

Describe the challenges that an organization will face when changing business processes and how information systems support business process.

  Difference in fixed exchange rate and floating rate systems

Describe the major differences in fixed exchange rate and floating rate systems. You require to compare the systems in terms of their impacts on the effectiveness of monetary and fiscal policies

  Compute the annual percentage rate of interest

Suppose you decide to buy a building for $30,000 by paying $5,000 down and suppose a mortgage of $25,000. The bank offers you a fifteen year mortgage requiring annual end of year payments of $3,188 each.

  Are you considered a default risk

Are you considered a default risk? How would a lender evaluate you based on "the five C's" of character capital, collateral, and conditions? How could you plan to make yourself more attractive to a lender in the future?

  Making profit by selling programs

Byron is considering to finance his college education by selling programs at the football games. There is a fixed expenses of $400 for printing these programs, & the variable cost is $3.

  Prepare dated journal entries to record the transactions

Prepare dated journal entries to record the transactions shown above. Assume that Econ did not enter into a forward contract.  Prepare dated journal entries to record the transactions

  What will the investment be worth at the end of year twenty

You invest $20,000 today, at a rate of 10% compound quarterly. What will the investment be worth at the end of year twenty?

  What is the receivable turnover

Rise Above This, Inc., has an average collection period of 27 days. Its average daily investment in receivables is $43,300. Assume 365 days per year. What is the receivable turnover (4 decimal places) and annual credit sales?

  What would the cash flow diagram look like

If an alternative has monthly payments of $10,000 a month for three years with a purchase price of $75,000 at the end of year three, what would the cash flow diagram look like? Select the correct choice from each pair of answers.

  Why would an investor pay more for investment a

Suppose investment A and investment B have identical expected cash flows. Why would an investor pay more for investment A than investment B?

  Calculate the required rate of return for manning enterprise

Manning has a beta of 2, and its realized rate of return has averaged 13% over the last 5 years. Round your answer to two decimal places.

  Determine the approximate value of investment

LED Computer Electronics is planning an investment that will have cash flows of $5,000, $6,000, $7,000 and $10,000 for years one through four.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd