Question 49 and 50 are based on the following information for France and Germany: France Germany Spot exchange rate FF 3.4375/DM DM0.2909/FF Expected inflation rate
Question 49 and 50 are based on the following information for France and Germany:
France Germany
Spot exchange rate FF 3.4375/DM DM0.2909/FF
Expected inflation rate 8.99% p.a 2.00% p. a.
One year t-bill rate 11.00% p.a. ??
49. To calculate the One-Year t-bill rate for Germany we have to computer the ___________ first.
| (a) real inflation rate | ||
| (b) real interest rate | ||
| (c) forward exchange rate | ||
| (d) sport exchange rate | ||
| (e) need more information |
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Authors: David Isaac
2nd Edition
0333987144, 978-0333987148
