Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year
True
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hope this help
Answer:
The equilibrium expected rate of return is higher for Kaskin than for Quinn.
Explanation:
Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.
Answer: $0
Explanation:
In the United States tax law, there exists 2 principal types of IRAs. They include: the traditional IRA and the Roth IRA.
Annual contributions are deductible when made to a traditional IRA, and in which case tax is paid on the retirement distributions.
But annual contributions made to a Roth IRA aren't deductible, and in which case taxes are not paid on retirement distributions.
Martha’s maximum deductible IRA contribution is $0 because taxes are not paid in the current year on earnings in both types of IRAs.
Answer:
The correct answer is C
Explanation:
Credit Card APR means that the credit card Annual Percent Rate, it is grounded APR on the prime rate which means the variable interest rate is the one which changes grounded on the another rate of interest. For example, APR on the credit card could be the prime rate plus 13%, this is the interest rate on the issuer credit card charges on top of the prime rate. And the APR also based on the credit history of the person.