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scZoUnD [109]
3 years ago
7

90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. What is the annualized forward prem

ium or
Business
1 answer:
Akimi4 [234]3 years ago
5 0

Answer:

7.6%

Explanation:

Calculation for What is the annualized forward premium or discount of the euro

Using this formula

Euro annualized forward premium or discount = [(F/S) - 1] x 360 days/90 days

Where,

F represent forward rate $1.07

S represent current spot rate $1.05

Let plug in the formula

Euro annualized forward premium or discount =[($1.07/$1.05) - 1] x 360 days/90 days

Euro annualized forward premium or discount =($1.019-1)×x 360 days/90 days

Euro annualized forward premium or discount =0.019×360 days/90 days

Euro annualized forward premium or discount =0.076×100

Euro annualized forward premium or discount = 7.6 %

Therefore the annualized forward premium or discount of the euro will be 7.6%

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A 10-year annual payment corporate bond has a market price of $1,050. It pays annual interest of $100 and its required rate of r
bija089 [108]

Answer:

bond under priced is  $14.18

Explanation:

given data

market price = $1,050

annual interest = $100

rate of return = 9 percent

time period = 10 year

solution

we get here bond mis priced so for we get first theoretical Price of the bond that is

theoretical Price of the bond  = annual interest × \frac{1- (1+r)^{-t }}{r} +  \frac{1000}{(1+r)^t}  ........1

theoretical Price of the bond  = 100 × \frac{1- (1+0.09)^t }{-10} + \frac{1000}{(1+0.09)^{10}}    

theoretical Price of the bond  = $1064.18

but actual Price is $1050

so here bond is under priced as  $1064.18 - $1050

bond under priced is  $14.18

6 0
3 years ago
Which of the following should you not consider when evaluating communication choices?
mamaluj [8]

Explanation: what the choices

6 0
3 years ago
A jury must decide whether a defendant, already judged should receive the death penalty. They are told that the defendant commit
Nat2105 [25]

Answer:

d.mitigating

Explanation:

This is a mitigating factor. A mitigating factor is a fact of relevance as it can reveal the motivations of the crime. Although not sufficient to absorb the defendant, except in cases of self-defense, when there is evidence of mitigating factors, this can be used to soften a defendant's penalty if it is proven that the motive for the crime was not misleading. A good example is the case in which the defendant committed a murder, and he was sentenced to death, but there is a mitigating factor: the defendant suffered physical abuse for years and killed his attacker. The jury can understand that the defendant committed the crime due to the suffering caused by the victim, which would be different from a crime motivated by trite motives. Thus, the death penalty can be understood as disproportionate and it can be reversed to a less severe penalty.

6 0
3 years ago
"A(n) _____ allows companies to exchange information and conduct transactions by purposely providing outsiders with direct, pass
Masja [62]

Answer:

Extranet

Explanation:

Extranet, is the type or the kind of a network which is a private network and it uses the Internet technology and the system of public telecommunication, so that could secure the part of the business or an organization operations or the information with the suppliers, partners and vendors.

So, the extranet is the technology which allows the firm or organization to exchange the operations or information in order to perform the transactions purposely through providing the password.

7 0
4 years ago
Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price o
pychu [463]

Answer:

If the offer is accepted, the income will decrease in $7,500.

Explanation:

Giving the following information:

Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 for $5 each.

Unitary variable cost:

Direct Materials= $1.75

Direct Labor= $2.50

Variable Overhead= $1.50

1) Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.

Accepting the offer:

Relevant cost= Unitary variable cost

Relevant cost= 1.75 + 2.5 + 1.50= $5.75

Relevant benefits= $5

2) Effect on income= 10,000*5 - 10,000*5.75= -$7,500

If the offer is accepted, the income will decrease in $7,500.

3 0
4 years ago
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