Suppose that you have 2,300,000 VND that can be invested in the US market for one year. Use the following information. T

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Suppose that you have 2,300,000 VND that can be invested in the US market for one year. Use the following information. T

Post by answerhappygod »

Suppose that you have 2,300,000 VND that can be invested in the
US market for one year. Use the following information.
Today's spot exchange rate: $1 = 23,000 VND
Today's forward exchange rate: $1 = 24,000 VND
US market interest rate = 10%
Vietnamese market interest rate = 6%
Today, you invest your money in the US market and also take an
one-year forward contract with the forward exchange rate ($1 =
24,000 VND). So, you are supposed to convert USD into VND at the
forward exchange rate a year later.
a) Calculate your investment return (percentage return).
b) Based on your answer above, does the IRP hold? Why?
Suppose That You Have 2 300 000 Vnd That Can Be Invested In The Us Market For One Year Use The Following Information T 1
Suppose That You Have 2 300 000 Vnd That Can Be Invested In The Us Market For One Year Use The Following Information T 1 (48.03 KiB) Viewed 24 times
A project is expected to produce the following cash flows: 0 1 2 3 ------------------------------------------|----.................. -500 200 300 300 The project's cost of capital is 5%. Find the MIRR
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply