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2 years ago

The foreign exchange market is a market for converting the currency of one country into that of another country.

Business

1 answer:

3241004551 [841]2 years ago

4 0

Answer:

a. True

Explanation:

The foreign exchange market is a market for converting the currency of one country into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

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F 1What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1

Llana [10]

Answer:

When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate

If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.

YTM if market price is 887 = 10.7366190%

YTM if market price is 1,134.2= 7.1764596%

Explanation:

For the YTM we can calculate an estimated using the following formula:

$YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}$

Where:

C= coupon payment 1,000 x 9% = 90

F= face value of the bonds = 1000

P= market price = 887

n= years to maturity = 10

YTM = 10.7366190%

$YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}$

C= 90

F= 1000

P= 1134.2

n= 10

YTM = 7.1764596%

A more precise answer can be achieve using excle or a financial calculator.

7 0

3 years ago

Exercise Bicycle Company is expected to pay a dividend in year 1 of $1.20, a dividend in year 2 of $1.50, and a dividend in year

prisoha [69]

Answer:

E. $40.68

Explanation:

The computation of the stock worth today is shown below:

= (Dividend in year 1 ÷ 1 + required rate of return^number of years ) + (Dividend in year 2 ÷ 1 + required rate of return^number of years) + (Dividend in year 3 ÷ 1 + required rate of return^number of years) + (Dividend in year 3 ÷ 1 + required rate of return^number of years) × (1 + growth rate) ÷ (required rate of return - growth rate)

= $1.2 ÷ 1.14 + $1.5 ÷ 1.14^2 + $2 ÷ 1.14^3 + $2 ÷ 1.14^3 × (1 + 10%) ÷ (14%-10%)

= $40.68

We simply applied the above formula

3 0

3 years ago

The name group of explorers that Louiseana purcha

sdas [7]

It was called the “ Lewis and Clark Expedition” or “ The Crops Of Discovery”. Hopefully this helped!!

4 0

3 years ago

Over the next three years, Distant Groves will pay annual dividends of $.65, $.70, and $.75 a share, respectively. After that, d

olganol [36]

Answer:

The share is worth $5.68 today.

Explanation:

The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.

The following is the formula for the price of the stock today,

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + Terminal value / (1+r)^n

The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes constant, like in this case, the terminal value is calculated as follows,

Terminal value = Dn * (1+g) / r - g

Where,

g is the Constant growth rate in dividends

So, the price of this stock today is,

P0 = 0.65 / (1+0.145) + 0.70 / (1+0.145)^2 + 0.75 / (1+0.145)^3 +

((0.75 * (1+0.02) / (0.145 - 0.02)) / (1+0.145)^3

P0 = $5.678 rounded off to $5.68

6 0

2 years ago

In studying for her real estate license, Elise is reading about police power. She is confused and doesn't understand why law enf

Arisa [49]

In studying for her real estate license, Elise is reading about police power. he term "police power" refer to in real estate refers to The government's authority under the Constitution to place limits on individual freedom in the name of protecting the public health, safety, and welfare. This is further explained below.

<h3>What is police power?</h3>

Generally, police power is simply defined as the authority granted to the state by the Constitution to impose reasonable restrictions on individuals or businesses for the public's protection and good.

In conclusion, When it comes to subdividing property, the police have complete authority and direction.