Question
The treasurer of a U.S company has $5,000 to invest for 90 days. A 90-day C$ commercial paper offers a yield of 4.00 percent. The
The treasurer of a U.S company has $5,000 to invest for 90 days. A 90-day C$ commercial paper offers a yield of 4.00 percent. The present exchange rate of C$ is $0.8980. If the U.S company decided to invest in Canadian commercial paper, what is the expected (annual) yield if the expected exchange rate of CS at the end of 90 days is $0.8890?
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Money Banking And Financial Markets
Authors: Laurence Ball
1st Edition
0716759349, 9780716759348
