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Butoxors [25]
2 years ago
5

Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.5% in Germany. I

n the spot market, 1 euro equals $1.35. What is the 90-day forward rate
Business
1 answer:
Marianna [84]2 years ago
3 0

Answer: 1.356345

Explanation:

Based on the scenario and information provided in the question, the 90-day forward rate will be calculated as:

= Spot Rate × (1 + Germany Interest Rate) / (1 + United States Interest Rate)

= 1.35 × (1 + 6.5%) / (1 + 6%)

= 1.35 × (1 + 0.065) / (1 + 0.06)

= 1.35 × 1.065/1.06

= 1.35 × 1.0047

= 1.356345

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What is the journal for : Incurred loan of $1000 from swiss bank. ?​
Fiesta28 [93]

Answer:

DR: Cash $1000

CR: Loan Payable $1000

Explanation:

N/A

8 0
3 years ago
You are a birder (birdwatcher) and your neighbor has put up several birdhouses in her yard and also planted trees and flowers th
REY [17]

Answer:

Positive externality

Explanation:

In economics, there are generally two different types of externality named as a positive and negative externality.

Positive externality: In economics, the term "positive externality" is described as a phenomenon that occurs when the production or consumption of a specific good leads to create a benefit to any third party.

Example: A particular beekeeper who tends to keep the bees as they produce honey.

In the question above, the given statement represents positive externality.

4 0
3 years ago
Suppose Country A and Country B each have the same real Gross Domestic Product (GDP), equal to $440 billion. Country A has 100 m
Gennadij [26K]

Answer:

1. higher in Country A

Explanation:

Given: Gross domestic product (GDP)= $440 billion.

           Country A has 100 million people.

           Country B has 175 million people.

Real Gross Domestic Product (GDP): It is defined as the entire output produced annually that includes factors such as inflation and is adjusted for price changes.

Per capita real Gross Domestic Product (GDP): It gives the annual salary for the country and shows the quality of living.

Now calculating per capita real Gross Domestic Product (GDP) for both the countries.

Formula; Per capita GDP= \frac{GDP}{Population}

<u>Country A</u>

⇒ Per capita GDP= \frac{440\ billion}{100\ million}

We know one billion= 1000 million.

⇒ Per capita GDP= \frac{440\times 1000}{100}

∴ Per capita GDP= \$4400\ million

<u>Country B</u>

⇒ Per capita GDP= \frac{440\times 1000}{175}

∴ Per capita GDP= \$ 2514.28 \ million

Hence, comparing both Per capita GDP of country A and B will get Country A have higher per capita GDP.

8 0
3 years ago
If you put up $43,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be?
AysviL [449]

Answer:

The annual cash flow will be $4,500.

Explanation:

Use following formula to calculate Annual Cash flow from Annuity.

Present value of annuity = annual cash flow ( 1 - ( 1 / ( 1 + rate of interest )^time period ) ) / rate of interest

PVA = C ( 1 - ( 1 / ( 1 + r )^t ) ) / r

$43,000 = C ( 1 - ( 1 / ( 1 + 0.0625)^15 ) ) / 0.0625

$43,000 = C x 9.5555

C = $43,000 / 9.5555

C = $4,500

So, the annual cash flow will be $4,500.

5 0
3 years ago
_______________ is intentionally or unintentionally using someone else's work without giving credit to the original author or cr
nasty-shy [4]

Answer:

b. Plagiarism

Explanation:

Plagiarism refers to the action of presenting somebody else work as your original work acknowledging the original author. Plagiarism may be deliberate or unintended. The internet has software applications that assist students and scholars check against plagiarism.

Plagiarism is considered an offense in the academic and scholarly world.

8 0
3 years ago
Read 2 more answers
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