Question
SinTell has USD $24 million in excess cash that it has invested in China at an annual interest rate of 11 percent. The U.S. interest
SinTell has USD $24 million in excess cash that it has invested in China at an annual interest rate of 11 percent. The U.S. interest rate is 4 percent. By how much would the Chinese yuan have to depreciate to cause such a strategy to backfire? Give your answer in decimal point, rounding up to 4 decimal places.
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PFIN
Authors: Randall Billingsley , Lawrence J. Gitman, Michael D. Joehnk
6th Edition
1337117005,1337516694
