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(5 Points) What is the actual or effective financing rate if the spot rate of the foreign currency is expected to rise from Aus$1.48 to
(5 Points) What is the actual or effective financing rate if the spot rate of the foreign currency is expected to rise from Aus$1.48 to Aus$1.52 and the current interest rate in Australia is 4.34% The actual or "effective financing rate will differ from the quoted rate based on: The interest rate charged by the bank. The movement in the borrowed currency's value over the time of the loan. >> =(+19{1+(85-9)]-4. where r= effective financing rate S = spot rate if = interest rate of the foreign currency
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