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love history [14]

3 years ago

7

(CO I) Suppose in the spot market 1 U.S. dollar equals 1.60 Canadian dollars. Six month Canadian securities have an annualized r

eturn of 6% (and thus a 6-month periodic return of 3%). Six month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%. If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180 - day forward market?

1 answer:

Natali5045456 [20]3 years ago

6 0

Answer:

U.S. dollar-Canadian dollar exchange rate is $1.5961

Explanation:

given data

1 U.S. dollar = 1.60 Canadian dollars

annualized return = 6%

annualized return = 6.5%

time = 180 day

to find out

what is the U.S. dollar-Canadian dollar exchange rate

solution

we know that 1 U.S. dollar equal to 1.60 Canadian dollars

and

exchange rate for 180 days is

exchange rate = Canadian dollar ×( 1 + canadian interest rate ) / ( 1+ US interest rate) .....................1

put here all these value

exchange rate = Canadian dollar ×( 1 + canadian interest rate ) / ( 1+ US interest rate)

exchange rate = 1.60 ×( 1 + 0.03 ) / ( 1+ 0.0325)

exchange rate = 1.5961

U.S. dollar-Canadian dollar exchange rate is $1.5961

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Answer:

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3 years ago

Tiger Trade has the following cash transactions for the period.

vovangra [49]

Answer:

Tiger Trade

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Cash flows from operating activities:

Cash received from sale of products to customers $35,000
Cash received for sale of services to customers $25,000
Cash paid to merchandise suppliers ($11,000)
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Cash flows from investing activities:

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3 years ago

A firm has 3 customer orders, each for 12,000lbs of coal. It is $15.75 per 100 lbs to ship directly to each customer (including

Ede4ka [16]

Answer:

Yes, firm should consolidate shipment as it give saving of $990.

Explanation:

Given: Three customer order 12000 lbs of coal each.

Cost of individual shipment is $15.75 per 100 lbs

Cost of consolidated shipment is $10.50 per 100 lbs with $300 fees.

Now, lets find out cost for all 3 customer in both the shipment.

Cost of individual shipment= $\frac{12000}{100} \times 15.75 = 120\times 15.75$

= $1890

Next, cost for all three customer´shipment is $1890\times 3= \$ 5670$

∴ Cost of shipment for three customer through individual shipment is $5670

Cost of consolidated shipment:

$\frac{12000}{100} \times 10.50= 120\times 10.50 = \$ 1260$

Next, cost for all three customer with the $300 fee= $3\times ( 1260+300)= \$ 4680$

∴ Cost of shipment for three customer through consolidated shipments is $4680

Saving with consolidated shipment = $5670-4680= \$ 990$

Now, we can say it is profitable for firm to consolidate shipment as it give saving of $990.

5 0

3 years ago

Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan d

shtirl [24]

Answer: A ballon note

Explanation: A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate.A balloon loan is a loan that you pay off with a single, final payment. Instead of a fixed monthly payment that gradually eliminates your debt, you typically make relatively small monthly payments. But those payments are not sufficient to pay off the loan before it comes due. As a result, you need to make a final “balloon” payment to pay off the remaining loan balance, and that payment may be significant.

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3 years ago

Cullumber Corporation purchased 37000 shares of common stock of the Sherman Corporation for $52 per share on January 2, 2020. Sh

yawa3891 [41]

Answer:

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Explanation:

Given:

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Cash dividends = $162000

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Find:

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Computation:

Revenue from investment = Net income (Purchased shares / Sherman Corporation total shares)

Revenue from investment = $620000 (37,000 / 100,000)

Revenue from investment = 229,400

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3 years ago