User Account

All Pages

One-year risk-free us security

Assignment Help Finance Basics
Reference no: EM132509652

The spot rate for the Japanese yen currently is ¥106 per $1. The one-year forward rate is ¥105 per $1. A risk-free asset in Japan is currently earning 5 percent. If interest rate parity holds, approximately what rate can you earn on a one-year risk-free U.S. security?

Reference no: EM132509652

Questions Cloud

What is the intrinsic value of the stock today : An appropriate required return for the stock is 12%. Using the multistage DDM, what is the intrinsic value of the stock today?
What amount will be used to capitalize : Knope Company has signed a capital lease contract for equipment that required annual rental payments of $40,000. What amount will be used to capitalize
Technology to perform and advance competitive advantage : The history, development, and growth of the company over time. How the company use technology to perform and advance competitive advantage?
Determine the monthly cost including benefits per coder : $25.00 plus 30% in benefits. If the coder contributes 6.5 hours per day for 20 days per month, determine the monthly cost including benefits per coder.
One-year risk-free us security : A risk-free asset in Japan is currently earning 5 percent. If interest rate parity holds, approximately what rate can you earn on a one-year risk-free U.S. secu
What are its tax expense and taxes payable : P Company included $60,000 in non-deductible fines in the $410,000. There are no other book-tax differences. What are its tax expense and taxes payable
What amount of operating income in the master budget : What amount of operating income in the master budget. What amount of operating income flexible budget would have shown for the actual activity level for June?
Relevant for determining the expected return : What type of risk is relevant for determining the expected return? Explain why one of these types of risks is rewarded with RISK premium while the other type is
Component of the entire purchasing cycle : The purchasing department is a vital component of the entire purchasing cycle. Identify the steps in the conventional purchasing cycle

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the present value of a five-year lease arrangement

what is the present value of a five-year lease arrangement with an interest rate of 9 percent that requires annual

  Contemplating the replacement of one of its bottling machine

The Boston Bottling Company is contemplating the replacement of one of its bottling machines with a newer and more efficient one. The old machine has a book value of $600,000 and a remaining useful life of 5 years. The firm does not expect to realize..

  Finance case study

The Peach Company is thinking of building a new plant to put the peaches it grows into cans. The plant is expected to last for 20 years. Its initial cost is $20 mln.

  Calculate the average returns of bull and the composite

a. Calculate the average returns of Bull and the Composite. b. Calculate the standard deviation of Bull and the Composite.

  Incentivize profit center managers

It may be a bad idea to give corporate headquarters the power to set transfer prices, since it may incentivize profit center managers to (increase/decrease)

  Determining the exchange rate risk

This makes you reluctant to do business with Kreploc because of exchange rate risk. The marketing department can't understand why you have any concerns at all. Prepare a brief explanation, including an illustration, of why you're concerned.

  What is the capital gains yield for bond

Assuming the par value is $1,000 and the YTM does not change over the next year, what will the price of the bond be today?

  Computing the targeted weighted average cost of capital

The firm has an after-tax cost of debt of 6 percent and a cost of equity of 12 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

  Solve for the real rate

Suppose the nominal rate is 17.73% and the inflation rate is 7.8%. Solve for the real rate. Use the Fisher Effect formula.

  Which security would choose for the interest rate

Suppose that the interest rate on a taxable corporate bond is 5.20 percent and that your marginal tax rate is 32 percent. Suppose a tax free municipal bond.

  Should the maching be purchased

What is the yaer 0 project cash flow?c. What are the project's annual cash flows during years 1, 2, ,and 3? Should the maching be purchased? Explain your answer.

  Financial analysis cocacola vs pepsihorizontal analysis

financial analysiscocacola vs pepsi1. horizontal analysis2. vertical analysis3. ratio analysis4. comparison of cocacola

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