What is the worth of this bank investment in us dollars

Reference no: EM131506706

Question: In a certain foreign country in 2009, the local currency (the ‘Real') was pegged to the U.S. dollar at the rate of $1 U.S. = 1 Real. The Real was then devalued over the next five years so that $1 U.S. = 2 Real. A bank in the Northeastern United States bought assets in this country valued at 100 million Real in 2009. Now that it is year 2014, what is the worth of this bank's investment in U.S. dollars? Should the bank sell out of its investment in this foreign country or should it buy more assets?

Reference no: EM131506706

Questions Cloud

What effects might spelling and abbreviation errors : What effects might spelling and abbreviation errors have on you, the provider, and the patient

Leadership volunteer opportunity you are completing : Share the servant leadership volunteer opportunity you are completing. Discuss how you think this experience will help you develop your own character.

Bias a scientists experiments and conclusions : Scientists are taught to follow the scientific method.In doing so they should be assured that there is no bias in their science.However,is this always the case.

Numerous corporate scandals occurred in the decade leading : Numerous corporate scandals occurred in the decade leading up to the financial crisis that began in 2007 and lasted into 2009.

What is the worth of this bank investment in us dollars : In a certain foreign country in 2009, the local currency (the ‘Real') was pegged to the U.S. dollar at the rate of $1 U.S. = 1 Real.

Determining the valuable training decision : Do you think this is a valuable training decision that is worth the extra cost? If yes, justify your reason.

What would be the exchange rate three years from now : An international corporation located in Country A is considering a project in the United States. The currency in Country A, say X, has been strengthening.

Determining the project procurement : In 200 words please tell me what is Project Procurement?

Amortization schedule : Amortization schedule-Complete amortization schedule for a $23,000 loan to be repaid in equal installments at the end of each of the next three years.

User Account

All Pages