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zepelin [54]
2 years ago
9

Suppose in the spot market 1 U.S. dollar equals 1.3750 Canadian dollars. 6-month Canadian securities have an annualized return o

f 6.00% (and thus a 6-month periodic return of 3.00%). 6-month U.S. securities have an annualized return of 6.50% and a periodic return of 3.25%. If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market
Business
1 answer:
myrzilka [38]2 years ago
4 0

Answer:

$1 = 1.372 CD

Explanation:

Spot rate, 1$ = 1.3750  Canadian dollars

Canadian securities annualized return = 6%

U.S. securities annualized return = 6.5%

Term = 6 month ≅(180 days)

Forward exchange rate in 180 days, 1$ = Spot rate * (1+US rate*6/12) / (1+CD rate*6/12)

= 1.3750 CD * (1 + 6%*6/12) / (1 + 6.5%*6/12)

= 1.3750 CD * (1 + 0.03) / (1 + 0.0325)

= 1.3750 CD * 1.03/1.0325

= 1.371670702179177 CD

= 1.372 CD

So, the the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market is $1 = 1.372 CD

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A company purchased 10 units for $5 on January 3. It purchased 10 units for $7 each on February 28. It sold 10 units on March 1.
NeTakaya

Answer:

The dollar amount for ending inventory using the last-in-first-out method of inventory valuation is $50

Explanation:

Using LIFO,last-in-first-out  method of inventory valuation,items received last into the store are deemed to be sold first, hence the sales of 10 units on March 1 was the inventory purchased on February 28, leaving the items of inventory purchased on January 3 as closing inventory

value of closing inventory using LIFO=10*$5=$50

3 0
2 years ago
Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development t
gtnhenbr [62]

Answer:

Intrapreneurs

Explanation:

An intrapreneur is an employee who is responsible for creating new products in an organization. An intrapreneur is an individual who converts an idea into a finished product. An intrapreneur must possess the ability to create something unique, they must be self motivated individuals who are willing to take calculated risks inorder to achieve their goals.

An intrapreneur possess entrepreneurship skills, they must be able to inspire other employees to create something new because an organization will loose it's relevance if new products are not developed.

6 0
3 years ago
In an attempt to have funds for a down payment, Jan Carlson plans to save $3,700 a year for the next five years. With an interes
Sveta_85 [38]

Answer:

$20,857.24

Explanation:

This is an ordinary annuity question which can be solved using a financial calculator. The inputs are as follows;

Total duration of investment; N = 5

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Recurring annual payment;  PMT = 3,700

One time cashflow; PV = 0

then compute the future value of the annuity; CPT FV = 20,857.244

Therefore, Jan will have $20,857.24 as down payment in 5 years.

7 0
3 years ago
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and
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Total= $159,552



Giving the following information:
The company has budgeted to sell 15,600 Debs in February.
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Other $ 40,600
Total= $159,552
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3 years ago
Careers in the Transportation and Logistics career cluster are
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Answer:

B)secure industries that are expected to grow.

Explanation:

The other person was right but just accidently said A) instead of B)

Hope this helps! :D

8 0
2 years ago
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