How many US dollars will have in one year

Reference no: EM132700020

Question 1: If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate of the Australian dollar is $.73. Interest Rate Parity is held. You will receive 5 million Australian dollars in one year. Today, you sell a one-year forward contract in Australian dollars. How many U.S. dollars will you have in one year from your forward contract?

Reference no: EM132700020

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