Question
The current exchange rate is one Australian dollar (AUD) equal to 1.349 USD. In the United States, the 6 months T-bill rate is 2.84%. The
The current exchange rate is one Australian dollar (AUD) equal to 1.349 USD. In the United States, the 6 months T-bill rate is 2.84%. The 6-month forward rate for AUD is .75 USD/AUD. Assuming that interest rate parity exists, what is the implied interest rate for Australia?
| A. | 5.19% | |
| B. | -2.35% | |
| C. | 2.35% | |
| D. | .49% |
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
9th Edition
0128016094, 978-0128016091
