Forward price of cad in terms of aud

Assignment Help Finance Basics
Reference no: EM132679104

The current exchange rate between Canadian dollar (CAD) and Australian dollar (AUD) is 0.89CAD/AUD. The CAD interest rate is 2.85% and AUD interest rate is 1.50%. Assume these interest rates are continuously compounded.

What is the 1.5-yr forward price of CAD in terms of AUD?

Reference no: EM132679104

Questions Cloud

What is the firm market value weight of equity : Tarrasa Mining Corporation has 9.3 million shares of common stock outstanding and 215,000 6.1% semiannual bonds outstanding, par value $1,000 each.
What is the maturity risk premium for the two-year security : Inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yields 8.1%. What is the maturity risk premium for the 2-year security?
General understanding of financial statements : Those actions will eventually appear in the firm's financial statement, so a general understanding of financial statements is very important for the manager."
What is yield to maturity for wilson wonders : Wilson Wonders, the bonds have a $1,000 par value, and the coupon interest rate is 12%. The bonds sell at a price of $1,100. What is their yield to maturity?
Forward price of cad in terms of aud : What is the 1.5-yr forward price of CAD in terms of AUD?
Current trading price of the stock : A stock has the required rate of return at 16%. The most recent dividend paid D0 = $2.00 and the expected dividend growth rate g = 10%.
What is the outlook for hospital cost increases : What is the likely response of hospitals when only one hospital is in a market, compared with their response when ten hospitals are competing for a large.
Arithmetic and geometric average returns for the stock : A stock has had returns of 23, 11, 37, -3, 22, and -17 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
Explain the differences between idaas and iaas : Write a 2-3 page paper where you compare and contrast the differences between IDaaS, IaaS and IAM. The submission needs to include a minimal of 3 scholarly.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the tax on the sale of the equipment

The equipment has a useful life of 10 years and a salvage value of $700,000 at the end of the project's life of 8 years. The tax rate is 35%.

  What is the value of the firm

What does it mean to "maximize the value of the firm?" In general, how is value created? What factors determine value and how does each affect the value of the

  Calculate the annual loan payment

Loan amortization schedule Joan Messineo borrowed $15,000 at a 14 percent yearly rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.

  Calculate the best-case and worst-case npv figures

Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.

  Which lender should johnnys pizza use

Johnny's Pizza owes $40,000 to one of its suppliers. The supplier has offered a trade discount of 2/10 net 30. Johnny's can borrow the funds from one of two lenders. Lender 1 will fund for 20 days at a cost of 400$; Lender 2 offers a discount for ..

  What is the required return

The dividends are anticipated to maintain a 0.07 growth rate forever. If the stock currently sells for $40 per share, what is the required return?

  Determine the total dollar amount received

MK. will receive SF1,028,000 in 30 days. Use the following information to determine the total dollar amount received

  Compute nike''s conservatism ratio over the last three years

Briefly describe the five largest accrued liabilities, and the basic form of the entry lending to their recognition on the balance sheet.

  How much would you need to deposit today

You are thinking of buying a condo at the beach when you retire in 20 years. The average price for the house you want is $175,000 today.

  Calculate the net profit margin for each year

Calculate the average annual growth rates for revenue and net income using the GEOMEAN function. Is net income growing more slowly or faster than total revenue? Is this a positive for your investment in the company?

  What is the npv of the purchase

A new electronic process monitor costs $701,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor could actually be worthless.

  What is the real rate of return if the inflation rate

You purchase 100 shares of stock for $40 a share. the stock pays a $4 per share dividend year-end.

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