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Korolek [52]
3 years ago
14

Suppose the U.S. yield curve is flat at 3% and the euro yield curve is flat at 5%. The current exchange rate is $1.4 per euro. W

hat will be the swap rate on an agreement to exchange currency over a 3-year period
Business
1 answer:
Kruka [31]3 years ago
3 0

Answer: hello your question is incomplete attached below is the complete question.

answer :

3.02 million,    2.96 million,    2.91 million

Explanation:

<u>Determine the swap rate over a 3-year period</u>

swap rate = forward exchange rate * exchange amount

For year 1

1.4 * ( 1 + 0.03 / 1 + 0.05 ) * 2.2 million

= 1.4 ( 0.98095 ) * 2.2

= 3.02 million

For year 2

1.4 * ( 1 + 0.03 / 1 + 0.05 )^2 * 2..2 million

= 1.4 ( 0.98095 )^2 * 2.2 million

= 2.96378 million

For year 3

1.4 * ( 1 + 0.03 / 1 + 0.05 )^3 * 2.2 million

= 1.4 ( 0.98095 )^3 * 2.2 million

= 2.90733 million  

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How is mutual accountability fostered? Select all that apply.
Gnesinka [82]

Answer:

The correct answer is letter "A": Team members share accountability for the work.

Explanation:

While talking about team formations, mutual accountability refers to the relationship that borns inside a group based on <em>trust </em>and <em>commitment </em>which makes them become a team. Accountability allows team members to give their opinions on the activities that hold them together which is likely to increase their engagement with the performance and collective results of the team.

3 0
3 years ago
Teller, a calendar year company, purchased merchandise from TechCom on November 1 of the current year. TechCom accepted Teller's
ikadub [295]

Answer:

Dr Interest Receivable $240

Cr       Interest Income             $240

Explanation:

The reason is that the Techcom company is lender and must account the lending as a loan.

The loan will be paid with the interest at the end of the period. The interest received at the end of December 31 would be the single month loan at the $4800 at the interest rate which is 10 percent here.

The Interest Income = $4800 * (10% interest rate * 2/12) = $240

The interes would be recorded for the two months which is $240 and accounted for as under:

Dr Interest Receivable $240

Cr       Interest Income             $240

And at the end of January 31, Teller will make the payment which would be accounted for as under:

Dr Cash $5260

Cr Interest Revenue  $120

Cr Notes Receivable $4800

Cr Interest Receivable $240

4 0
4 years ago
Exercise<br>1. State and explain 5 characteristics of the<br>youth​
9966 [12]
1. Physical characteristics
2. Mental characteristics
3. Emotional characteristics
4. Social characteristics
4. Spiritual life
The Type of youths include respectable,delinquent,politically militant and cultural rebels.
4 0
3 years ago
Robust, a leading industrial manufacturer, has developed a new air conditioner with high cooling capacity. To identify potential
stich3 [128]

Answer:

This scenario illustrates lead generation.

Explanation:

Lead generation is the way toward pulling in and changing over customers and into somebody who has shown passion for your organization's item or products. A few examples of lead generations are requests for newspapers, blog entries, search engines and various other online contents. Similar, lead generation is combined with lead management to increases purchases, and the process is called pipeline marketing.

8 0
3 years ago
Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula
Citrus2011 [14]

Answer:

4.89%

Explanation:

Real rate of return = 3.37%

Inflation rate = 1.47%

The nominal rate of return is computed as shown below:

= [ (1 + real rate of return) x (1 + inflation rate) ] - 1

= [ (1 + 0.0337) x (1 + 0.0147) ] - 1

= (1.0337 * 1.0147) - 1

= 1.04889539 - 1

= 0.04889539

= 4.889539%

= 4.89% approx.

7 0
4 years ago
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