What is effective dollar interest rate from investing in us

Assignment Help Financial Accounting
Reference no: EM132917748

Problem 1: You observe that the current USD/CAD spot rate is $0.82/CAD and the USD/CAD one year forward rate today is $0.9/CAD. You can invest in the US at 4.2% per annum or in Canada at 8.9% per annum. What is the effective dollar interest rate from investing in the US for one year?

Reference no: EM132917748

Questions Cloud

What effective interest rate for each ?three-month period is : What the effective interest rate for each 3?-month period is? You work for? Sam, a financial planner. Sam has tasked you with evaluation the value of a proposal
Explain the expectancy theory model : Diagrammatically depict and explain the Expectancy Theory Model, along with the practical features of the theory.
About macronutrients-protein-carbohydrates and fats : You learn about macronutrients: protein, carbohydrates, and fats. Why do you prefer this type of diet to other diet options?
Myth of public goods by mark davis : State and explain to Mark Davis that there are rational reasons why public goods and services cannot be priced in market mechanisms.
What is effective dollar interest rate from investing in us : You can invest in the US at 4.2% per annum or in Canada at 8.9% per annum. What is the effective dollar interest rate from investing in the US for one year?
What is the effective dollar interest rate from investing : You can invest in the US at 6.2% per annum or in Canada at 4.1% per annum. What is the effective dollar interest rate from investing in Canada for one year?
What is the no-arbitrage one-year forward rate for the euro : If interest rates are 5.5% APR in the U.S. and 10% APR in the euro zone, what is the no-arbitrage 1-year forward rate for the euro in terms of dollars (USD/EUR)
Analyse external environment for the company using strategic : Analyse external environment for the company using strategic tools (ex: pestel)?
Describe the characteristics of rem and non-rem sleep : Describe the characteristics of REM and non-REM sleep. Include a discussion about their sequence during the night.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Why is difficult for accountants

Briefly explain why it is difficult for accountants to determine whether or not revenue has been earned if the sales process is not complete.

  Sell coupon books as a fund-raising activity

The Soccer Club decided to sell coupon books as a fund-raising activity. The books allow users to enjoy restaurants, entertainment, and services such as oil changes, at substantial discounts. The club bought 100 books for $16 each, and members will s..

  Find what is the standard deviation

Five monthly returns for PG Company are 2.75 percent, -0.75 percent, 4.15 percent, 6.29 percent, and 3.84 percent. What is the standard deviation?

  Does economics indicate hat this change will help americans

does economics indicate hat this change will help americans achieve higher living standards?

  Membership in the federal reserve system

Membership in the Federal Reserve System is

  Discuss the difficulties associated with a typical merger

Discuss the difficulties associated with a typical merger. Provide real life examples of mergers that have gone through such difficulties.

  What is the catheterization labs profit

The annual fixed cost for the catheterization lab is $1 million and the variable cost is $129 per procedure. What is the catheterization labs profit?

  Is depletion considered part of the product cost

On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. Is depletion considered part of the product cost and included in the cost

  How do bonds and stocks be a sourced of financing

How do bonds and stocks be a sourced of financing for the business? Explain the effect of bonds and stocks issuances to the capital structure of the business

  Compute income from operations

Assume Adams Company has the following reported amounts: Sales revenue $510,000, Sales returns and allowances $15,000; Cost of goods sold $330,000, Operating expenses $110,000.

  How compute the accounting rate of return

Generates net receipts of $250,000 for 10 years. Assuming straight-line depreciation of $100,000 per year; compute the Accounting rate of return.

  While engaged in audit procedure-alternative procedures

While engaged in an audit procedure, alternative procedures are sometimes necessary. While verifying the existence and ability to be collected on certain assertions, the auditor will seek positive confirmation from the debtors. When referring to cert..

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd