Risk-free securities yield

Assignment Help Financial Management

Reference no: EM131298336

Assume that interest rate parity holds. In both the spot market and the 90-day forward market 1 Japanese yen equals 0.0086 dollar. In Japan, 90-day risk-free securities yield 4.9%. What is the yield on 90-day risk-free securities in the United States? Round your answer to two decimal places.

Reference no: EM131298336

Questions Cloud

What is the fair interest rate and inflation premium : You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 1.95 percent. What is the fair interest rate on Moore Corpo..

Prepare a pro-forma income statement for the second quarter : Prepare all components (sales budget, cash collections budget, purchases budget, cash disbursements for purchases budget, selling and administrative budget - Prepare a pro-forma income statement for the second quarter.

Why might a firm find factoring services useful : What services are offered by this firm? What is factoring? Why might a firm find factoring services useful? What kind of information does this site offer?

How is the free-rider problem avoided : For each public good in the list, is there a free-rider problem? If not, how is the free-rider problem avoided?

Risk-free securities yield : Assume that interest rate parity holds. In both the spot market and the 90-day forward market 1 Japanese yen equals 0.0086 dollar. In Japan, 90-day risk-free securities yield 4.9%. What is the yield on 90-day risk-free securities in the United States..

Review how the size of dells assets has increased over time : Why do you think Dell has been able to grow at a much faster rate than other firms in its industry?- Do you think Dell is reaching its peak level, or does it have more potential for growth?

Benefits of the waste disposal system : If voters are well informed about the costs and benefits of the waste disposal system, what capacity will voters choose? If voters are rationally ignorant, will bureaucrats install the efficient capacity? Explain your answer.

Develop a totally new registration system at sjsu : Suppose that you are the leader of a team that has just been established to develop a totally new registration system at SJSU. How can you use an understanding of the stages of team development to improve your team's effectiveness? Discuss.

Bonds are currently yielding a return : Tom and Sue’s Flowers, Inc.’s, 15-year bonds are currently yielding a return of 9.05 percent. The expected inflation premium is 3.05 percent annually and the real risk-free rate is expected to be 3.20 percent annually over the next 15 years. Calculat..

User Account

All Pages