What interest rate would be needed on pound securities

Assignment Help Econometrics

Reference no: EM131136432

Suppose you expect the pound to depreciate by 6 percent over the next year. Assume that the U.S. interest rate is 4 percent. What interest rate would be needed on pound securities, such as government bonds, for you to be willing to buy those securities with your dollars today and then sell them in a year in exchange for dollars?

Reference no: EM131136432

Questions Cloud

Explain the change in web designing is responsive web design : The newest changes in web designing is Responsive Web Design. For this paper you will research this upcoming new design considerations. Use Google, or some other search engine, to find information, DO NOT use Wikipedia as a reference.

What horizon is the assumption of fixed prices a valid one : Over what horizon is the assumption of fixed prices a valid one? Explain.

Roles that interest groups play in american politics : Determine three roles that interest groups play in American politics in terms of impacting election outcomes

Prepare a tabular analysis of the transactions : Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, N. Barone, Capital; N. Barone, Drawings; Revenues, and Expenses.

What interest rate would be needed on pound securities : What interest rate would be needed on pound securities, such as government bonds, for you to be willing to buy those securities with your dollars today and then sell them in a year in exchange for dollars?

Develop a list of database management system capabilities : Develop a list of database management system capabilities to compare these systems. Develop your criterion and definitions in a table that lists the criteria, your definition, and your rankings.

Persuasive argument-how safe is safe : You work in the Customer Service department at Greenlawn, a company that applies chemical fertilizers, herbicides, and pesticides to lawns. Recently, Greenlawn received a letter from Gwen Smith, a customer with a five-year-old child and an infant.

Is this type of activity important in us political : Is this type of activity important in U.S. political and civic life? Explain your response and give at least two additional examples of how a person can participate in a democratic society

Complete the financial plan document : Which aspect of the industry (customers, competitors, suppliers) may create the greatest risk for your business? Explain.

User Account

All Pages