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What is the return on cdn bank

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Reference no: EM133145253

You have $500 CDN to invest for one year in either a CDN bank or a German Bank using the following data show all calculations and answer the following questions. Exchange rates CDN /Euro today (0.6928) One year forward (0.6950). What is the best investment?

Interest rate Canada 6% per annum

Interest Rate Germany 4% per annum

  1. What is the return on CDN Bank (2Marks)
  2. What is the return on German Bank (3Marks)

 Show all calculations 

Reference no: EM133145253

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