Question
Deriving Forecasts of the Future Spot Rate. As of today, assume the following information is the available US Mexico Real rate of interest required by
Deriving Forecasts of the Future Spot Rate. As of today, assume the following information is the available
US Mexico
Real rate of interest required by investors 2% 2%
Nominal interest rate 11% 15%
Spot rate ---- $0.20
One-year forward rate ---- $0.19
a) Use the forward rate to forecast the percentage change in the Mexican peso over the next year.
b. Use the differential in expected inflation to forecast the percentage change in the Mexican peso over the next year.
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Venture Capital And The Corporate Governance Of Chinese Listed Companies
Authors: Lin Zhang
1st Edition
1461412803,1461412811
