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viktelen [127]
3 years ago
9

Assume that interest rate parity holds. The U.S. five-year interest rate is 5 percent annualized, and the Mexican five-year inte

rest rate is 8 percent annualized. Today's spot rate of the Mexican peso is $.20. What is the approximate five-year forecast of the peso's spot rate if the five-year forward rate is used as a forecast?
Business
1 answer:
Arte-miy333 [17]3 years ago
8 0

Answer:

The 5 year forcast of the peso´s spot rate is $0.1737

Explanation:

Hi, in order to find the Forward rate, we need to use the following formula.

F_{\frac{USD}{MXP} } =S_{\frac{USD}{MXP} } \frac{(1+R_{USD} )^5}{(1+R_{MXP} )^5}

Now, everything should look like this.

F_{\frac{USD}{MXP} } =0.20_{\frac{USD}{MXP} } \frac{(1+0.05 )^5}{(1+0.08)^5} =0.1737_{\frac{USD}{MXP} }

Best of luck.

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Traditionally, department stores almost exclusively offered soft goods. But now, most department stores focus on selling both ha
Studentka2010 [4]

Answer:

False

Explanation:

Traditionally, department stores sold both soft goods and hard goods. But now, most department stores focus almost exclusively on soft goods.

Soft goods refers generally to clothing and other textiles like bedding and fabrics.

Hard goods refers to a broad range of products like appliances, furniture, tools, electronics, etc.

5 0
3 years ago
Identify strategies to promote the development of the human resources field in business
Naya [18.7K]

Answer:

  1. Develop a thorough understanding of your company’s objectives
  2. Evaluate your HR capability
  3. Analyze your current HR capacity in light of your goals
  4. Estimate your company’s future HR requirements
  5. Determine the tools required for employees to complete the job
  6. Implement the human resource management strategy
  7. Evaluation and corrective action

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3 years ago
Wei lives in Beijing where most consumers value thriftiness and perseverance, and relationships are gradually established with t
aleksley [76]

Answer:

d. long-term orientation

Explanation:

Based on the information provided within the question it can be said that this is an example of a culture high in long-term orientation . This term refers to placing all resources and focus on the long term future of something in order to make sure it lasts for as long as possible and provides great benefits far off in the future. Which is what the consumers in Beijing seem to value the most.

8 0
3 years ago
Dear Ms. Gonzalez: Although I am disappointed to hear that you have selected another candidate for the marketing position, I app
adoni [48]

Answer:

It emphasize on applicant's continued interest because when you create a follow up letter after rejection, candidate should be confident and persistent . He should show confidence in meeting the job requirements.

Explanation:

5 0
3 years ago
Wildhorse Co. sells merchandise on account for $2800 to Morton Company with credit terms of 2/8, n/30. Morton Company returns $8
kipiarov [429]

Answer: Cash $1,960

Sales returns and allowances $800

Sales discount $40

Accounts receivable $2,800

Explanation:

Sales = $2,800

Sales returns = $800

Discount rate = 2%

The final amount due will be:

= Sales- Sales returns

= $2,800 - $800

= $2,000

Sales discount = 2% × $2,000 = $40

Cash received will be:

Final amount due - Sales discount

= $2,000 - $40

= $1,960

The journal entry will be:

Debit Cash $1,960

Debit Sales returns and allowances $800

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Credit Accounts receivable $2,800

5 0
2 years ago
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