Question
Matis corporation invest 1,500,00 South African rand as a nominal interest rate of 10 perent. At the tmime the investment is made, the spot rate
Matis corporation invest 1,500,00 South African rand as a nominal interest rate of 10 perent. At the tmime the investment is made, the spot rate of the rand is USD 0.205. If the spot rate of the rand at maturity of the investment is USD 0.203, what is the effective yield of investing in rand?
A. 11.08 percent
B. 8.92 percent
C. 10.00 percent
D. 12.50 percent
E. none of the above
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
