Question
You have $20,000 to invest and observe the following interest rates and exchange rates: Annual interest rates Dollar Ruble Exchange rates Ruble spot Ruble
You have $20,000 to invest and observe the following interest rates and exchange rates: Annual interest rates Dollar Ruble Exchange rates Ruble spot Ruble 1-year forward 0+ decimals Deposit rate 3.2% 7.3% Bid $0.015 $0.017 Part 1 How many rubles will you get from converting your dollars? Submit Loan rate 3.9% 8.2% Ask $0.016 $0.018 Attempt 1/10 for 10 pts. Part 2 Attempt 1/10 for 10 pts. How many rubles will you have after depositing them at a Russian bank for one year? 0+ decimals Submit Part 3 Attempt 1/10 for 10 pts. How many dollars will you get from selling your rubles in one year at the one year forward rate? 0+ decimals Submit
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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