Question
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.4050. The six month USD interest rate is
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.4050. The six month USD interest rate is 1.7% per annum continuously compounded. Estimate the six month euro interest rate. (Please round your answer to four decimal places) Example- The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.4050. The six month USD interest rate is 1.9% per annum continuously compounded. Estimate the six month euro interest rate
= 0.0119 is the correct answer for the example I couldn't figure out the formula in excel
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Finance And Economics Discussion Series Is Learning By Exporting Important Micro Dynamic Evidence From Colombia Mexico And Morocco
Authors: United States Federal Reserve Board , Sofronis Clerides
1st Edition
1288722362, 9781288722365
