An Australian firm borrowed USD100 000 for a year.U.S. interest rates were 0.5%. The AUD/USD rate at the time of investment was 1.1000 and at maturity was expected to be 1.2000. Calculate the effective financing rate.

An Australian company wishes to invest AUD100 000 surplus cash for three months.Three-month interest rates in the U.S. are 1.00% p.a., the AUD/USD spot rate is 1.100 and the estimated spot rate at maturity is 1.200. What is the estimated rate of return per annum (de-annualized) ?

 

An Australian firm wishes to invest AUD156 000 for a year.U.S. interest rates were 1.25-1.75%. The AUD/USD rate at the time of investment was 1.5400-1.5600 and at maturity was expected to be 1.8624-1.8864. Calculate the effective rate or return.

Australian firm borrowed USD100 000 for a year.U.S. interest rates were 1.25-1.75%. The AUD/USD rate at the time of borrowing was 1.5400-1.5600 and at maturity was expected to be 1.8624-1.8864. Calculate the effective financing rate.

An Australian company wishes to invest AUD1 000 000 in ten-year bonds.The ten-year bond rate in Australia is 5.11% and in the U.K. is 4.00%.The AUD/GBP spot rate is 2.5372 and the estimated spot rate at maturity is 2.6000.The income tax rates for Australia and the U.K. are respectively 49% and 39%.The capital gains tax rate in Australia is 39%. Where would you invest?

An Australian company wishes to borrow AUD1 000 000 for ten years.The ten-year bond rate in the U.K. is 3.50%, the AUD/GBP spot rate is 2.5000 and the estimated spot rate at maturity is 2.2000.What is the estimated effective annual financing rate?