1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Musya8 [376]
3 years ago
5

Assume the U.S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spot rate of the NZ$ is $.52, an

d the one-year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $.48. Based on this information, what is the effective financing rate for a U.S. firm that takes out a one-year, uncovered NZ$ loan?
Business
1 answer:
dlinn [17]3 years ago
6 0

Answer:

about −1.7%

Explanation:

% change in pound

=$0.48-$0.52/0.52

=-0.04/0.52

=-7.7%

Effective financing rate =

(1 + 6.5%)[1 + (−7.7%)] − 1

= about −1.7%

Therefore the effective financing rate for a U.S. firm that takes out a one-year, uncovered NZ$ loan is about -1.7%

You might be interested in
The Ascent of Money: Risky Business<br> 1. Why do people buy insurance?
Assoli18 [71]

Answer:

to eliminate the possibilities of risk

7 0
3 years ago
In 1969, don bought a dodge dart for $2,500. he drove this car until 2003 when he bought a honda civic for $18,000. if the price
nexus9112 [7]
Close to around 15,000?
3 0
4 years ago
In <br> , people invest money in a company in exchange for the company’s <br> .
arsen [322]

Answer:

In equity crowdfunding, people invest money in a company in exchange for the company’s shares

Explanation:

Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.

Startups and early-stage companies use this method to raise capital.

6 0
3 years ago
7.The firm has an inventory period of 84.6 days, an accounts payable period of 43.2 days, and an accounts receivable period of 4
Pavel [41]

Answer: 126.3 days.

Explanation:

The Operating Cycle essentially refers to how long it takes a business to convert inventory to cash. The entire period between production, to selling to recovering money from Receivables is incorporated here.

The formula therefore is,

= Days Sales in inventory + Days Sales Receivables

= 84.6 + 41.7

= 126. 3 days

4 0
3 years ago
Chrysler has a bond outstanding with eight years remaining to maturity, a coupon rate of 5 percent, and semiannual payments. If
Snezhnost [94]

Answer:

10%

Explanation:

Calculation to determine the yield to maturity

Using financial calculator

FV= 1,000

N=2*8= 16

PMT=$1,000(0.05)/2 =$25 semiannual

PV -$729.05

I/Y = 5% semiannual

YTM=?

Hence,

YTM=10% YTM

Therefore the yield to maturity is 10%

7 0
3 years ago
Other questions:
  • Pixi Boutique will have cash receipts of​ $57,000 in December and cash disbursements of​ $51,000 for this month. If its beginnin
    6·1 answer
  • Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The
    11·1 answer
  • Zan Azlett and Angela Zesiger have joined forces to start​ A&amp;Z Lettuce​ Products, a processor of packaged shredded lettuce f
    6·1 answer
  • University Car Wash built a deluxe car wash across the street from campus. The new machines cost $261,000 including installation
    9·1 answer
  • ABC developed a new horse transport device and incurred research and development costs of $250,000. Rather than continue with th
    12·1 answer
  • If the USA can produce 12,000 personal computers or 16,000 TVs, and Japan can produce 10,000 personal computers or 30,000 TVs, t
    10·1 answer
  • In the market for pickled herring there are two competing producers: Abbas and Taste of Base. Both herring manufacturers have fi
    8·1 answer
  • 9.
    8·2 answers
  • HELP ASAP ! When a person does not have their basic needs met, what is the focus?
    15·1 answer
  • Assuming everything else is constant, when a stock goes ex-rights the stock price should:_____.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!