A US corporation borrows Swiss francs for 1 year at 8%. For the next year, the Swiss franc is anticipated to fall by 6% against the dollar. What is the loan's effective interest rate?*

 A US company borrows British pounds for one year at 6 percent. The US one-year interest rate is 8 percent. The one-year forward rate of the pound is $1.93. The spot rate of the pound at the beginning is $1.95. The pound's spot rate is $2.05 by the end of the year. Based on the information, compute the percentage change in pound and the effective interest rate of the loan.*

The one-year US interest rate is 10 percent, and the one-year Italian interest rate is 13 percent. If a US company invests its funds in Italy, by what percentage would the euro have to depreciate to make its effective interest rate the same as the US interest rate from the US company's perspective?*