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krok68 [10]
3 years ago
7

A Japanese investor can earn a 1 percent annual interest rate in Japan or about 4.1 percent per year in the United States. If th

e spot exchange rate is 101 yen to the dollar, at what one-year forward rate would an investor be indifferent between the U.S. and Japanese investments? a. 95.99 b. 96.99 c. 97.99 d 98.99 e. 99.99 f. 100.99 g. 101.99 h. 102.99 yens per dollar
Business
1 answer:
Whitepunk [10]3 years ago
4 0

Answer: 97.99

Explanation:

The one-year forward rate that an investor would be indifferent between the U.S. and Japanese investments will be:

= Spot rate × (1 + Japanese rate / 1 + U.S rate)

= 101 × (1 + 1% / 1 + 4.1%)

= 101 × [(1 + 0.01) / (1 + 0.041)]

= 101 × (1.01/1.041)

= 101 × 0.9702209

= 97.99

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Answer:

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Explanation:

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Answer:

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7 0
3 years ago
Benchmarking involvesA. comparing how different companies perform various value chain activities and then making cross-company c
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Answer:

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It consists of investigating competitors in order to compare operations, products and services between a company and its main competitors. Through the research of competitors it is possible to better understand the market and adapt the best practices to be successful, in addition to achieving continuous improvement of processes, in addition to reducing errors and costs through the analysis and knowledge of the actions of competing companies.

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Answer:

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On December 31, 20X2 and 20X3, Apex Co. had 3,000 shares of $100 par, 5% cumulative preferred stock outstanding. No dividends we
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