Answer:
1.90%
Explanation:
Note that that CAD exchange rate would be in terms of how many US dollars can be exchanged for 1 CAD, which means that the formula for forward premium would be stated in terms of US dollars, I mean the US$ as the numerator and CAD's interest rate would be the denominator
the forward premium for CAD=((1+US interest rate)/(1+Canada interest rate))-1
the forward premium for CAD=((1+7%)/(1+5%))-1
the forward premium for CAD=1.90%
Answer:
i believe the answer is b
Answer:
The correct solution would be "Purchase money loan
".
Explanation:
- The purchasing money allowance would be granted by that of the producer to the consumer of such the property. This is also considered as financing by the seller as well as by the owner.
- Those other loans are mostly utilized by borrowers who've had difficulty applying for something like a conventional mortgage leading to negative performance.
The correct answer is remittance advice
The remittance advice is this evidence paper that payment has been made. All of the others are not payment evidence, but rather ways of paying.
Answer:
Zero coupon Treasury bond with a duration equal to the investors investment horizon.
Explanation:
Zero coupon Treasury bond is also called Treasury Zero and the face value of the bond is paid on maturity.
They do not pay interest periodically or coupon payment. Thus the name zero coupon.
This is in contrast to other bond types that make periodic payment of interest and then recieved face value at maturity.
Zero coupon Treasury bond minimises risk for the investor because the government always pays it's obligations.
The agreed value at maturity is not subject to market forces and other economic factors.
In this scenario when the zero coupon treasury bond has the same duration as investor investment horizon it minimises his risk compared to other bond types
