User Account

All Pages

Percentage return from covered interest arbitrage

Assignment Help Finance Basics
Reference no: EM132055015

Assume the following information:

Current spot rate of Australian dollar =$.86

Forecasted spot rate of Australian dollar 1 year from now =$.88 1-year forward rate of Australian dollar =$.93

Annual interest rate for Australian dollar deposit =4%

Annual interest rate in the U.S. =2%

What is your percentage return from covered interest arbitrage with $650,000?

Reference no: EM132055015

Questions Cloud

Explain the different types of operating systems : Computerized Operating Systems (OS) are almost everywhere. We encounter them when we use out laptop or desktop computer.
Explain the principles of health informatics : CMP105 This assignment is intended to demonstrate your comprehension of the main principles of health informatics, as well as the primary applications.
What is the project expected npv if it can be abandoned : Once the project is abandoned, the company would no longer receive any cash inflows from it. What is the project's expected NPV if it can be abandoned?
Explain how the selected computer crime victimizes someone : Explain whether you agree or disagree with the way the selected computer crime in your chosen article is being addressed.
Percentage return from covered interest arbitrage : What is your percentage return from covered interest arbitrage with $650,000?
Changes in reimbursement practices : From the standpoint of hospitals and physicians, what are the challenges associated with the changes in reimbursement practices?
The bonds make semiannual payments : The bonds make semiannual payments. If the YTM on these bonds is 7 percent, what is the current bond price?
Write a proposal for upper management : Write a proposal for upper management on why you think you are qualified for this position.
Which of the teams do you mostly identify with and why : As a group, identify four (4) types of teams. What are their characteristics? As a group, which of the teams do you mostly identify with and why?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the difference between the expected rate of return

what is the difference between the expected rate of return and the required rate of return? what does it mean if they

  How would you hedge that risk

Assuming that interest rate risk is the only risk of concern, will the hedge described above be effective? Why or why not? Is there any other risk that deserves to be considered? If so, how would you hedge that risk?

  What does the bond currently sell for

A given bond has 5 years to maturity. It has a face value of$1,000. It has a YTM of 6% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for?

  Case study compare value investing to traditional

Case Study Compare value investing to traditional valuation methods using Bennington Corporation

  Primary securities market

Illustrate out the primary securities market and secondary securities market? Recognize two securities exchanges and how they affect trading and the investor.

  How much of this amount must kristen pay

The total bill was $20,000. Considering the deductible and coinsurance, how much of this amount must Kristen pay?

  Pro forma statements of five year projections

Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line ..

  Portfolio of the two assets

What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of 0.8, what are the portfolio weights?

  Count for a patient not taking supplements

What is the expected CD4 count for a patient not taking supplements who has had HIV for 2.5 years?

  What is the firm weighted average cost

The yield-to-maturity on the debt is 9.36 percent. What is the firm's weighted average cost of capital if the tax rate is 35 percent?

  Using your textbook and online readings explain how you

using your textbook and online readings explain how you would go about finding a solution to the questionsproblems that

  Reimburses employees who earn masters degrees and who agree

reimburses employees who earn masters degrees and who agree to remain with the firm for an additional 3 years should

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