Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if the interest rate in the united kingdom is 8 pe

If the interest rate in the United Kingdom is 8 percent, the interest rate in...

90.2K

Verified Solution

Question

Accounting

image
If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 10 percent, the spot exchange rate is $135/K1, and interest rate parity holds, what must be the one-year forward exchange rate? (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

DISCOUNTED PAYBACK Project K costs $52,125, its expected cash inflows are $12,000 per year for 8...

Finance
Q

You operate your own small building company and have decided to bid on a government contract...

Economics
Q

true or false: The weighted-average approach to process costing combines the work and costs done in...

Accounting
Q

A triangle has angle measurements of 54 36 and 90 What kind of triangle is...

Geometry
Q

3 The displacement in meters of a particle moving in a straight line is given...

Calculus
Q

ollowing is the adjusted trial balance, with accounts in alphabetical order, for TRN Magazine as...

Accounting
Q

Sales in December were $960,000. Projected sales for the first quarter of 20X0 are: January...

Accounting
Q

Raner, Harris & Chan is a consulting firm that specializes in information systems for medical...

Accounting
Q

Sunland Inc. is considering two alternatives to finance its construction of a new $2.20 million...

Accounting
Q

Mr. Mohammed Faizaan is an auditor of Xavier Company. During audit, he found that Mr....

Accounting
Q

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods. The units of an item...

Accounting
Q

Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon...

Finance