What is the implied german interest rate

Assignment Help Financial Management
Reference no: EM131341343

The Wall Street Journal, on October 12, 2000, listed the following information on the exchange rates between the dollar and the German mark:

X0 = 2.2500 DM/$
E0 = $0.4444/DM
XF(90 days) = 2.2399 DM/$
EF(90 days) = $0.4464/DM

The U.S. prime rate on that day was 9.5 percent. What is the implied German interest rate?

Reference no: EM131341343

Questions Cloud

What is the exchange rate between francs and pounds : If the exchange rate between francs and dollars is Fr 7.546 = $1.00, and between pounds and dollars is £1 = $1.4623, what is the exchange rate between francs and pounds?
What is a social desirability response set : What are the advantages and disadvantages of using questionnaires versus interviews in a survey?
Area under the standard normal curve corresponding : Using the standard normal distribution tables, what is the area under the standard normal curve corresponding to Z
Discuss how physical findings are congruent or incongruent : Discuss how physical findings are congruent or incongruent with your existing spiritual or cultural beliefs on self-regulation and behavior. Don't approach the physical findings as analogies or metaphors for spiritual processes, but discuss how ph..
What is the implied german interest rate : The Wall Street Journal, on October 12, 2000, listed the following information on the exchange rates between the dollar and the German mark:- What is the implied German interest rate?
Distinguish between haphazard and quota sampling : Distinguish between probability and nonprobability sampling techniques. What are the implications of each?
Why does swenson begin with a first person speaker : Who are the two characters in this poem, and what are they each like? What is the allegory of the poem? Does this love story have a happy ending? Why or why not? Why does Swenson begin with a first person speaker?
Confidence interval for data : Calculate the 95% confidence interval for these data. Calculate the effect size, Cohen's d, for these data and interpret the result in complete sentences (e.g., "Small effect size." Is not acceptable; "The small effect size means that X is lower ..
What is positive about her first muse : How does Alvarez react when she hears she is only supposed to be writing in Spanish, her first language? Why does she accept this so easily? What is positive about her "first muse"? do you see anything negative about this muse?

Reviews

Write a Review

Financial Management Questions & Answers

  Analysts estimate a market beta for the hospital project

Assume that Community Health Systems (CHS) is evaluating the feasibility of building a new hospital in an area not currently served by the company. The company's analysts estimate a market beta for the hospital project of 1.1, which is somewhat highe..

  Do the quotes above facilitate currency arbitrage

Assume that one euro (EUR) currently costs NOK 8.00 in the spot-market and NOK 7.6500 in the 6- month’s forward market. The current, one-year interest rate on NOK-denominated, government issued money-market securities is 3.25 percent, while the one-y..

  Performing in the areas of profit-debt and asset turnover

Compare and contrast the two companies in terms of how well or how poorly they are performing in the areas of profit, debt, and asset turnover. Use appropriate ratios in your analysis. Indicate strategies for possible improvement in each area. the co..

  Corporate bond-what will be change in the price of bond

A corporate bond with a face value of $1000 and a coupon rate of 5% has only 4 years remaining to maturity. Because of its credit rating, this bond has a yield of 6.5%. The rating agencies just upgraded the bond, and as a result its discount rate fel..

  The internet has affected the financial markets by

The Internet has affected the financial markets by

  Contribution margin ratio-net operating income

Maack Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $51,500. If the company's sales for a month are $314,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses ..

  Analysis of alternatives

Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfa..

  Banking services-anks could offer to small- business owners

If you were a small-business owner, would you take advantage of any Chase’s or another bank’s small-business banking services? Why or why not? Can you think of any additional financial or banking services that anks could offer to small- business owne..

  Calculate the growth rate

The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 14% and its expected EPS is $7. If the firm’s plowback ratio is 40%. a. Calculate the growth rate. (Input your answer as a nearest whole percent.) Growth rate % b. w..

  Value of each investment based on requried rate of return

You have finally saved $10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: Capital Cities ABC, Inc. bonds with a par value of $1,000 and a coupon interest rate of 8.75 percent, are ..

  What is the effective interest rate on the loan

Gulliver Travel Agencies thinks interest rates in Europe are low. The firm borrows euros at 13 percent for one year. During this time period the dollar falls 12 percent against the euro. What is the effective interest rate on the loan for one year?

  An overview of merger and acquisition

The project will provide an overview of Merger and Acquisition, valuation methods, insight on deal design, how to finance the M&A deal, considerations of capital structure such as debt and equity, in addition to terms of exchange.

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