Answer:
The answer is: Downward pressure on the Argentine peso's forward rate
Explanation:
Forward rates are interest rates applicable to financial transactions that will happen in the future.
Currently the Argentine peso is yielding a high interest rate. If American firms try to benefit from this by investing in financial transactions involving Argentine pesos, they will eventually put downward pressure to reduce Argentine peso's forward rate. As the demand for Argentine pesos increase, they will yield lower interest rates.
Answer:
communication skills
bachelor's degree
planning and organizational skills
research skills
Explanation:
Answer:
D). Technological advancement
Explanation:
Answer:
Initial confidence index 66.67%
New confidence index 71.4%
Explanation:
Calculation of what would happen to the
confidence index
Using this formula
Confidence index=(Average yield for high grate bonds)/(Average yield for intermediate graded bonds)
Let plug in the formula
Initial confidence index=4%/6%
=0.6667 ×100
=66.67%
Due to increase in the yields the New Confidence Index will be;
New confidence index
=(4%+1%)/(6%+1%)
=5%/7%=0.7142857 or 0.714
0.714×100=71.4%
Hence, the New Confidence index tend to indicates slightly higher confidence and the reason for the increase in the index is the expectation of higher inflation.
Answer:
NPV =$ -6,586.30
$7,500
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The net present value can be calculated using a financial calculator.
Cash flow in year zero = -40,000
Cash flow each year from year one to five = 9,500
1 = 13%
NPV =$ -6,586.30
b. ($9500×5) - $40,000 = $47,500 - $40,000 = $7,500
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you