What is you gain or loss on the investment in the CD

Assignment Help Financial Management

Reference no: EM13970854

a. On September 24, 20xx, you purchased a 3-month British-pound denominated CD by converting $1 million to pounds at a rate of .4964 pounds for U.S. dollars. It is now three months later, i.e. December 24, 20xx, and the exchange rate between U.S. dollars and British pound is .4998 pounds per U.S. dollar. (i) Has the U.S. dollar appreciated or depreciated against the British pound? b. Using the information in part (a), what is you gain or loss on the investment in the CD? Assume that you will be paid interest on the CD, and the CD interest rate is 4 percent annually.

Reference no: EM13970854

Questions Cloud

Life insurance needs analysis case : Your friend John asks you for advice concerning life insurance. John is 34 years old and graduated from law school last year. He currently earns $24,000 per year as a waiter, but is looking for a position with a local law firm. John picks up Billy fr..

Find the market value of lawrences shares when : Common stock value: Variable growth Lawrence Industries’ most recent annual dividend was $1.80 per share (D0 = $1.80), and the firm’s required return is 11%. Find the market value of Lawrence’s shares when:

What is the after tax cost of capital to walgreen for bonds : The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15 year maturity at a price of $946 that carries a coupon interest rate of 12.3 percent that ..

What are the three forms of business organization : What are the three forms of business organization and their advantages and disadvantages and if you were to form your own business which organizational form would you choose and why?

What is you gain or loss on the investment in the CD : On September 24, 20xx, you purchased a 3-month British-pound denominated CD by converting $1 million to pounds at a rate of .4964 pounds for U.S. dollars. Using the information in part (a), what is you gain or loss on the investment in the CD?

Expected future events along with their respective cash flow : A decision maker must decide whether or not automate a given process. Depending on the technological success of the automation project, the result will turn out to be either poor, fair, or excellent. Draw the decision tree diagram for this problem. S..

What is the bonds price : Nungesser Corporation's outstanding bonds have a $1,000 par value, a 8% semiannual coupon, 14 years to maturity, and an 11% YTM. What is the bond's price? Round your answer to the nearest cent.

Pro forma income statement for your corporation : (Leverage and EPS) You have developed the following pro forma income statement for your corporation. If sales should increase by 25 percent. by what percent would earnings before interest and taxes and net income increase? If sales should decrease by..

Depreciation-capital expenses-debt-debt principal payments : Cummings has EAT, depreciation expense, capital expenses, debt and debt principal payments of $9m, $2.8m, $1.3m, $40m and $1.5m respectively. Between the first and the second years, it has current assets of $11m and $13.4m and current debts of $5m an..

User Account

All Pages