User Account

All Pages

Calculate the 1-year forward rate

Assignment Help Business Management
Reference no: EM132743468

Assume 1-year interest rates in India and Singapore are 3% and 6%, respectively. Clearly, the interest rate in India is much lower than the interest rate in Singapore by 3%. Due to the significant interest rate differences between these 2 countries, several firms in Singapore have decided to borrow INR to finance their expansions rather than to get the borrowings from their home country. The current spot rate is INR54.0410/SGD.

Calculate the 1-year forward rate. From your answer, explain this forward rate as to be an unbiased predictor (UFR) of the INR/SGD future spot rate in relation to the interest rate parity (IRP).

Reference no: EM132743468

Questions Cloud

What is the net present value of the projects : Suppose the Company wants to abandon the projects, assess which year is the best for such decision? What is the Net Present Value of the projects
What is the effective interest rate of the loan : My Hope Company is negotiating for a 4-month discounted loan for P200,000, at 12% per annum. The negotiated loan requires a 20% compensating balance.
How should the acquisition deal be structured : Suppose Hindustan Unilever (HUL) is acquiring a Tech-based Delivery Start-up in India so that it doesn't have to rely on e-commerce websites for delivery.
How many months will it take todd to cover the cost : Todd Foley is applying for a $230,000 mortgage. He can select either a $1610 monthly payment with no points or a $1449 payment with four points.
Calculate the 1-year forward rate : Calculate the 1-year forward rate. From your answer, explain this forward rate as to be an unbiased predictor (UFR) of the INR/SGD future spot
Which the account analysis approach to estimating fixed cost : Which the account analysis approach to estimating fixed and variable costs? is based on the professional judgment of the manager.
Calculate the consolidated net income : On January 1, 2014, Paterson Company purchased 60% of the common stock of Smith Company for $540,000. At that time, Smith's stockholders' equity consisted.
Scenarios of expectations of future exchange rates : Describe FIVE (5) scenarios of expectations of future exchange rates that could affect exchange rate changes
Calculate the required rate of return on innovation shares : Calculate the required rate of return on Innovation's shares. Innovation Ltd.'s stock has a beta of 0.8. The Treasury bills are currently returning 2.5% p.a.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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