1.APS textiles BD LTD has a chance to make a small investment (US bond @ 10% annual interest rate) in USA. Recently the exchange rate between BDT and USD is fluctuating on a random basis. To reduce the exchange rate risk of USD investment, APS has decided to get in a 2-year forward contract to convert the proceeds to BDT in 2 years. APS has 10,000 BDT to invest at this moment.The current exchange rate (BDT/USD) = 84.2-year forward rate (BDT/USD) = 85.2.

What is the return (in BDT) on the total bond investment (BDT 10,000) in USA after 2 years?

2.Pathao is constructing a new building and in order to finance that construction, Pathao borrows $2,000,000 at an interest rate of 10 percent per year on 1 January 2018. The building will have a useful life of 30 years and salvage value of $20,000. Construction is completed after two years, during which time the company earns $50,000 by temporarily investing the loan proceeds.

a. What is the total amount of interest that will be capitalized under IFRS during the construction period?

b. What is the total amount of interest that will be capitalized under US GAAP during the construction period?

c. What will the yearly depreciation expense of this building when the building is complete, under straight-line method

d. What will the depreciation rate be after construction is completed using the accelerated method?