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Assume the following given rates; assume interest rate parity exists. Obtain the interest rate data you need from Bloomberg.com to derive the 1-year forward rate
| Assume the following given rates; assume interest rate parity exists. Obtain the interest rate data you need from Bloomberg.com to derive the 1-year forward rate premium (or discount), and then determine the 1 year forward rate of the Brazilian real. | ||||||||||
| Spot rate for Brazilian real today | $0.300 | USD/B Real | ||||||||
| 1 year US interest rate | 0.0009 | <- you need to look up these rates, enter as decimals (that is, if it is 1.25 percent, enter .0125) | ||||||||
| 1 year Brazilian interest rate | 0.0425 | <- you need to look up these rates, enter as decimals (that is, if it is 1.25 percent, enter .0125) | ||||||||
| Forward rate premium (or discount) | ||||||||||
| Forward rate of the Brazilian real | ||||||||||
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The Tools And Techniques Of Investment Planning
Authors: Stephan R. Leimberg , Thomas Robinson , Robert R. Johnson
3rd Edition
193982916X,1939829178
