What is the yield on 90-day risk-free securities

Assignment Help Finance Basics
Reference no: EM13281887

Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen = 0.0086 dollar. And 90-day risk-free securities yield 4.6% in Japan. What is the yield on 90-day risk-free securities in the United States?

Reference no: EM13281887

Questions Cloud

How much net working capital does the firm need to fund : Elle Mae Industries has a cash balance of $62,000, accounts payable of $210,000; inventory of $250,000; accounts receivable of $310,000; notes payable of $222,000; and accrued wages and taxes of $52,000. How much net working capital does the firm ..
Identify the organization specific financial strengths : Introduce the healthcare organization you have selected for your topic, explain its mission, describe whether it is a for -profit or a not-for -profit organization, and indicate the community it serves.
Design a circuit that has a low pass transfer function : Design a circuit that has a low pass transfer function with a3dB band edge at 30Hz. you may use capacitors, inductors, and bothdependant and indepandant sources.
Calculate the sr membrane potential : Difference in pH where the cytoplasmic pH is lower than that of the SR and the electrical potential across the membrane is more positive on the cytoplasmic side.
What is the yield on 90-day risk-free securities : Assume that interest rate parity holds. In both the spot market and the 90-day forward market, 1 Japanese yen = 0.0086 dollar. And 90-day risk-free securities yield 4.6% in Japan. What is the yield on 90-day risk-free securities in the United Stat..
Possible problems in a real estate transaction : What are possible problems in a real estate transaction that may need addressing and how could they be resolved?
What is the corresponding effect on foreign investments : If the United States imports more goods from abroad than it exports, foreigners will tend to have a surplus of U.S. dollars. What will this do to the value of the dollar with respect to foreign currencies? What is the corresponding effect on forei..
Determine the heat added to the gas during the expansion : An ideal gas initially at 20°C and 199 kPa has a volume of 3.40 L. It undergoes a quasi-static, Find the heat added to the gas during the expansion
Determine the smallest allowable value of resistance : The design guidelines for a circuit call for using only 1/4 W resistors. This means that the resistors are only capable of dissipating .25W of power without sustaining damage. The maximum voltage level in the circuit is known to be 12 V.

Reviews

Write a Review

Finance Basics Questions & Answers

  What annual interest rate must they earn to reach their goal

Your parents will retire in 19 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your ans..

  Determine the total estimated uncollectibles

Hachey Corporation has accounts receivable of $95,100 at March 31, 2007. An analysis of the accounts shows these amounts.

  What are the firms accounts receivables turnover

Loretta Inc., has net sales of $760,000 and accounts receivables of $168,000. What are the firm's accounts receivables turnover?

  Difference between defined benefit and contribution

Determine the difference between defined benefit and defined contribution and also define derivatives.

  Determine the value of equity

Pit Row Auto, a countrywide auto-parts chain, is planning purchasing a smaller chain, Southern Auto. Pit Row's analyst's project that the merger will result in incremental free cash flows and interest tax savings of $2 million in Year 1st

  What was the original issue price

Bedford Mattress Company issued preferred stock many years ago. It carries a fixed dividend of $11 per share. With the passage of time, yields have gone down from the original 12 percent to 8 percent (yield is the same as required rate of return).

  Finding interest expenses

200,000 in assets to get into operation with only two financing alternatives 1. 2.50 percent equity and 50% debt. you will put the entire 200,000 required to purchase the assets

  What is the maximum amount the firm should pay

Which investment should be considered? (for any credit, show your work). Use a 9.5% discount rate. Hint: A discount rate gives you the clue that you should perform a present value analysis on each investment.

  Issues set out in the assignment

Assignment requires you to address the issues set out in the assignment. The task is to be done in group of TWO (2). The assignment has two parts, A and B. Part A requires you to set up a company and process a number of transactions using MYOB.

  What will be the discount amount and net amount paid

What will be the discount amount and net amount paid if payment is made 26th July 2012?

  What was the rate of price appreciation for year

Electronics, Inc. common stock returned a nifty 22.68% rate of return last year. The dividend amount was $0.25 a share which equated to a dividend yield of 0.84%. What was the rate of price appreciation (capital gain) for the year?

  What is amcs share price prior to the share repurchase

AMC Corporation currently has an enterprise value of $350 million and $110 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will..

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