You have been given the foreign exchange data for Kenya against US dollars as follows:

spot rate	bid	ask
market a	93	95
market b	94	96

The macroeconomic variables for Kenya and US at the time were:

	kenya	us
interest rate	12%	8%
inflation rate	8%	5%

Required: 

a) Compute mean rates for each of the markets,AandB. (5 Marks)

b) Compute the Bid/Ask spread for both markets,AandB. (5 Marks)

c) Using interest rate parity theorem, compute the exchange premium or discount. (5 Marks)

d) Determine the forward rates for each of the markets: (5 Marks)

accounting help all 3 Table 2 Sales Sales retums and allowances 011/09 OMAN Sales discounts 9914 Cost of goods sold Selist expenses Administrative expenses Interest expense O $335.000 O $78,000 $177,000 O $255.000 Ob to cash of 3.400 Dece to sales tume and lowance of $3,400 Credio sus and allowances of $3,400 Debil to invery of $1,500 $480.000 15,000 Given the above accounts for CLC Company what is the amount of gross profit margin 25.000 105,000 150.000 nder a perpetual inventory system on the selon books, the ends to record a $3,400 allowance from a cash sale 1:500 would include a 132.000 10.000 herchander with a col Hot sets merchandise on account for $1,500 to Jones Company with creams of 210/30 Jones Company pays the balance due on day What is the amount of the check 201 Under a perpetual inventory system, on the sellers books, the entries to record a $3,400 allowance from a cash sale of merchandise with a cost of $1,500 would include a: O Debit to cash of $3,400 O Debit to sales returns and allowance of $3,400 O Credit to sales returns and allowances of $3,400 O Debit to inventory of $1,500 Question 20 3.33 pts Holt sells merchandise on account for $1,500 to Jones Company with credit terms of 2/10,n/30. Jones Company pays the balance due on day 8. What is the amount of the check? O $1,470 O $1,476 O $1,500 O $1,176