Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
IFE and Forward Rate. The one-year Treasury (risk-free) interest rate in the U.S. is presently 6%, while the one-year Treasury interest rate in Switzerland is 13%. The spot rate of the Swiss franc is $.80. Assume that you believe in the international Fisher effect. You will receive 1 million Swiss francs in one year.
a. What is the estimated amount of dollars you will receive when converting the francs to U.S. dollars in one year at the spot rate at that time?
b. Assume that interest rate parity exists. If you hedged your future receivables with a one-year forward contract, how many dollars will you receive when converting the francs to U.S. dollars in one year?
ABC currently has 650000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share peice and the total number of share after each of the following?
Have you been exposed to interest rate risk? Have you been exposed reinvestment risk?
The South Korean multinational manufacturing firm, Nam Sung Industries, is debating whether to invest in a 2-year project in the United States. The projects expected dollar cash flows consist of an initial investment of $1 million with cash inflows o..
A man holds a note of $5,000 that has an interest rate of 12% annually. The note was made on March 19 and is due November 11. He sells the note to a bank on June 11 at a discount rate of 11% annually. Find the proceeds on the third-party discount not..
You are investing in a stock that will deliver 6% per year, for 6 years. Assume you invest $10,000 initially. The tax on both capital gains and dividends is 28%. If the returns are capital appreciation, you hold for 6 years and do not sell, what is t..
Merton Enterprises has bonds on the market making annual payments, with 15 years to maturity, and selling for $971. At this price, the bonds yield 8.3 percent. What must the coupon rate be on Merton’s bonds?
Suppose that your bank currently operates with a DGAP of 2.2 years. Which of the following will serve to reduce the bank's interest rate risk? a. Issue a one year zero coupon CD to a customer and use the proceeds to buy a three year zero coupon Treas..
If a portfolio had a return of 15%, the risk-free asset return was 5%, and the standard deviation of the portfolio's excess returns was 30%, the Sharpe measure would be ______ .
Draw a time line showing the cash flows for a bond that has a four year maturity, semiannual coupon payments, a coupon rate of 5 percent, and a par value of $1,000.
What drives oil prices in the U.S economy.
You own an old water skiing motorboat that is a real gas guzzler. It is 10 years old and can be sold now for $3,000 cash. Assume its market value (MV) in 2 years will be $500. The annual maintenance expenses are expected to be $400 into the foreseeab..
if the coupon bond is selling at par, it's current yield equals its yield to maturity. if rates fall after its issue, a zero coupon bond could trade for an amount above its par value. a zero coupon bonds current yield is equal to its yield to maturit..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd