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Suppose that the U.S.firm Halliburton buys construction equipment from the Japanese fum Komatsust a price of 7230 million. The equipment is to be delivered to

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Suppose that the U.S.firm Halliburton buys construction equipment from the Japanese fum Komatsust a price of 7230 million. The equipment is to be delivered to the United States and paid for in one year. The current exchange rate is 102 $1. The current interest rate on one-year U.S. Treasury bills is 89% and on one-year Japanese government bonds the interest rate is 6% att Halliburton exchanges dollars for yen today and invests the yen in Japan for one year, it will need 5 2127266 to exchange today in order to have V230 million in one year. (Round your response to the nearest dollar) b. Halliburton enters a forward contract, agreeing to buy V230 million in one year at an exchange rate of 100 = 51, will need today if it plans to invest the dollars at the U.S. Interest rate of 8 (Round your response to the nearest dollar) Enter your answer in the answer box and then click Check Answer Clear All Check

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