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Suppose that you know the following (i) yield 6% per annum (ii) New Zealand 3 month Treasury bills UŠ 3 month Treasury bills yield 8% per annum the spot exchange rate is NZ$1= US$0.75 (iv) $1 = US$0.77 The return to investing NZ$1 in the US for 3 months is NZ$. and include the original $1 invested in the value of the return) (ii) the 3 month forward exchange rate is %3D ---_(Answer: use 3 d.p.

Suppose that you know the following (i) yield 6% per annum (ii) New Zealand 3 month Treasury bills UŠ 3 month Treasury bills yield 8% per annum the spot exchange rate is NZ$1= US$0.75 (iv) $1 = US$0.77 The return to investing NZ$1 in the US for 3 months is NZ$. and include the original $1 invested in the value of the return) (ii) the 3 month forward exchange rate is %3D ---_(Answer: use 3 d.p.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter27: Multinational Financial Management
Section: Chapter Questions
Problem 2P: The nominal yield on 6-month T-bills is 7%, while default-free Japanese bonds that mature in 6...
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Suppose that you know the following (i) yield 6% per annum (ii) New Zealand 3 month Treasury bills UŠ 3 month Treasury bills yield 8% per annum the spot exchange rate is NZ$1 = US$0.75 (iv) $1 = US$0.77 The return to investing NZ$1 in the US for 3 months is NZ$. and include the original $1 invested in the value of the return) (ii) the 3 month forward exchange rate is %3D (Answer: use 3 d.p.
Transcribed Image Text:Suppose that you know the following (i) yield 6% per annum (ii) New Zealand 3 month Treasury bills UŠ 3 month Treasury bills yield 8% per annum the spot exchange rate is NZ$1 = US$0.75 (iv) $1 = US$0.77 The return to investing NZ$1 in the US for 3 months is NZ$. and include the original $1 invested in the value of the return) (ii) the 3 month forward exchange rate is %3D (Answer: use 3 d.p.
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