User Account

All Pages

Calculate the 1-year forward rate

Assignment Help Finance Basics
Reference no: EM132747166

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: EM132747166

Questions Cloud

Determine the compound amount : 1. Determine the compound amount if P15 ,000.00 is invested at 5% compound quarterly for 6 years
Strength and weakness of modern portfolio theory : What's the strength and weakness of Modern Portfolio Theory (MPT)
Explain some of the many concepts : Explain some of the many concepts, such as currency exchange, triangulation, international monetary systems, tariffs
Process of maintaining blockchain apps after deployment : Describes the process of maintaining blockchain apps after deployment.
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 rate in relation
Scenarios of expectations of future exchange rates : Describe FIVE (5) scenarios of expectations of future exchange rates that could affect exchange rate changes
Define information governance : Definitions between Information Governance (IG), Data Governance (DG) and Information Technology Governance (ITG),
Mechanisms in protecting against spam activity : Provide a short narrative on security techniques and mechanisms in protecting against spam activity.
Better anticipate future threats : Explain how you would reduce potential vulnerabilities, protect against intrusion attempts, and better anticipate future threats.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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