Solved: Calculate one-year usd-cad forward rate, Finance Basics

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Calculate one-year usd-cad forward rate

The one-year U.S. dollar interest rate is 2.75% and one-year Canadian dollar interest rate is 4.25%. The current USD/CAD spot exchange rate is 1.0221-1.0225. Calculate the one-year USD/CAD forward rate. Assume annual compounding.

A. 1.0076

B. 1.0074

C. 1.0075

D. 1.03722

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Finance Basics: Calculate one-year usd-cad forward rate

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculate one-year usd-cad forward rate

Reference No:- TGS0673648

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Effects of interest rate shift on fixed-income portfolios

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculate one-year usd-cad forward rate

Reference No:- TGS0673648

Recent Questions Asked Finance Basics

Q : Effects of interest rate shift on fixed-income portfolios

Q : How financial institution affected interest rate fluctuation

Q : Comparing writing strategies

Q : How to inventory situations consider

Q : Calculate one-year usd-cad forward rate

Q : What amount should be reported on brik camera shop

Q : Best estimate of the portfolio daily var

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