Assume that the one-year forward rate is used as the forecast of the future spot rate. The
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Assume that the one-year forward rate is used as the forecast of the future spot rate. The Malaysian ringgit’s spot rate is £0.12, while its one-year forward rate is £0.11. The Malaysian one-year interest rate is 11%. What is the expected effective yield on a oneyear deposit in Malaysia by a UK firm?
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Jinah Patricia Padilla
Had an experience as an external auditor in Ernst & Young Philippines and currently a Corporate Accountant in a consultancy company providing manpower to a 5-star hotel in Makati, Philippines, Makati Diamond Residences
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