Question
QUESTION 2 Tunas Mekar Bhd has decided to venture into a new project with a UK based company. The capital required for this project is
QUESTION 2
Tunas Mekar Bhd has decided to venture into a new project with a UK based company. The capital required for this project is 12 million needed in 6 months time. The company decides to borrow the amount and finds that the 6 months interest rate in UK is 3.50% and in Malaysia is 2.5%. At present the exchange rate is RM5.1630/ and the 6-months forward rate is RM5.1950/. Based on the information, how much would the interest arbitrage profit (loss) be?
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The Palgrave Handbook Of Government Budget Forecasting
Authors: Daniel Williams, Thad Calabrese
1st Edition
3030181944, 978-3030181949
