If the spot CAD/USD rate is 1.1239 and the two year interest rates on CAD and USD are 1.75% and 1.4% annually respectively, then calculate the 2-year CAD/USD forward rate.
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If the spot CAD/USD rate is 1.1239 and the two year interest rates on CAD and USD are 1.75% and 1.4% annually respectively, then calculate the 2-year CAD/USD forward rate.
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?If the spot CAD/USD rate is 1.1239 and the three month interest rates on CAD and USD are 0.75% and 0.4% annually respectively, then calculate the 3-month CAD/USD forward rate.
- What interest rate compounded bi-monthly is needed for an amount of P20,679 to increase to P30,550 in 3 years?Using annual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is deposited intially at 10% annual interest for 10 years , and (2) determine the effective annual rate (EAR)Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 5 years, and (2) determine the effective annual rate (EAR).
- If the effective annual interest rate is 9.58% and the nominal annual rate is 9.25%, compounding is: a. Monthly b. Bi-monthly c. Continuous d. Semi-annual e. QuarterlyIf a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year, what will be its interest rate?Which one of the following represents the highest effective interest rate per year? Select one: O a. 10.5% per year, compounded semiannually Ob. 10.4% per year, compounded daily O c. 10% per year, compounded quarterly O d. 10% per year, compounded monthly O e. 9.8% per year, compounded continuously
- 1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually. How much is in the account at the end of each compounding period? (Calculate the interest and compound it each period rather than using the compound interest formula. Round your answers to the nearest cent.) first period $ second period $ How much total interest does it earn? (Round your answer to the nearest cent.)$ What is the APY? %Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $5,000 is deposited initially at 11% annual interest for 9 years, and (2) determine the effective annual rate (EAR).
