Question
please check answer Assume the U.S. interest rate is .075, the New Zealand interest rate is 0.049, the spot rate of the NZ$ is $0.57,
please check answer
Assume the U.S. interest rate is .075, the New Zealand interest rate is 0.049, the spot
rate of the NZ$ is $0.57, and the oneyear forward rate of the NZ$ is $.50. At
the end of the year, the spot rate is $0.43. Based on this information, what is
the effective financing rate for a U.S. firm that takes out a oneyear,
uncovered NZ$ loan? -0.21
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
