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Tim Sweet Seed Inc. has accounts payable of 29,000,000 Japanese yen (JPY), which are due within one year. The spot rate
Posted: Thu May 19, 2022 7:02 am
by answerhappygod
- Tim Sweet Seed Inc Has Accounts Payable Of 29 000 000 Japanese Yen Jpy Which Are Due Within One Year The Spot Rate 1 (20.44 KiB) Viewed 66 times
Tim Sweet Seed Inc. has accounts payable of 29,000,000 Japanese yen (JPY), which are due within one year. The spot rate for the yen is 0.0127 U.S. dollars, the forward rate for the yen is 0.0144 US dollars. The annual savings and borrowing rates in Japan are 7% and 12%, respectively. The annual savings and borrowing rates in the U.S. are 9% and 12%, respectively. If the
company wants to lock in the exchange rates using the money market hedge, the payment (in U.S. dollars) to the bank in a year would be a 385,510 b. 351,858 c358,435 d 378,437