Andreas Broszio (Geneva). Andreas Broszio just started as an analyst for Credit Suisse in Geneva, Switzerland. He receives the following quotes for Swiss francs against the dollar for spot, 1 month forward, 3 months forward, and 6 months forward.

Spot exchange rate:
	Bid rate	SF1.2574/$
	Ask rate	SF1.2597/$
	1-month forward	10 to 15
	3-months forward	14 to 22
	6-months forward	20 to 30

The current one-year U.S. T-Bill rate is

4.4%.

a. Calculate outright quotes for bid and ask and the number of points spread between each.

b. What do you notice about the spread as quotes evolve from spot toward 6 months?

c. What is the 6-month Swiss bill rate?

a. Calculate outright quotes for bid and ask and the number of points spread between each.

Calculate the outright quotes for bid and ask and the number of points spread between each below:(Round to four decimalplaces.)

	Bid	Ask	Spread
One-month forward (SF/$)	1.2584	1.2612	0.0028

3-months forward (SF/$)

1.2588

1.2619

0.0031

6-months forward (SF/$)

1.2594

1.2627

0.0033

b. What do you notice about the spread as quotes evolve from spot toward 6 months?(Select from the drop-down menus.)

It

widens, most likely a result o fthinner and thinner trading volume.

c. What is the 6-month Swiss bill rate? (Round exchange rate to four decimal places and interest rate to three decimal places.)

Six-month Swiss bill rate
Spot rate, midrate (SF/$)	1.2586

Six-month forward rate, midrate (SF/$)

1.2611

Maturity (days)	180
Six-month U.S. dollar treasury rate (yield)	4.400	%
Implied SF interest rate		%

can you help me explain question and show work step by step How I get Implied SF interest rate on part C?