Question
Suppose you are borrowing CAD$5000000,000 (50 points) a. Canada at 8.0% N.A. for 250 days b. U.S.A. at 7.5% N.A. for 250 days c. Brazil
Suppose you are borrowing CAD$5000000,000 (50 points) a. Canada at 8.0% N.A. for 250 days
b. U.S.A. at 7.5% N.A. for 250 days
c. Brazil 6.0% N.A. for 250 days
USD/CAD = $1.36
USD/BRL = $5.20
USD/CAD will appreciate (stronger) by 2.0% in 250 days
USD/BRL will depreciate (weaker) by 3.0% in 250 days ***
Which country is a better option for borrowing money?
2.) Suppose you are borrowing MXN$10000,000 (50 points)
a. Mexico at 18.75% N.A. for 300 days
b. U.S.A. at 7.00% N.A. for 300 days
c. Japan at 4.0 N.A. for 300 days
USD/MXN = $20.00
USD/JPY = $144.00
MXN will depreciate (weaker) by 3.00 % in 300days
JPY will appreciate (stronger) by 2.00 % in 300days
*** Which country is a better option for borrowing money?
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The People Policies Audit
Authors: Maurice A. Phelps
1st Edition
1907766049, 978-1907766046
