1. Current one-year interest rate is 9% for the U.S dollar and 7% for the euro. If the current exchange rate is $1.3=1 euro, what is the expected exchange rate in one year?
2. What is the YTM on a 9-year, 9% annual coupon, $100 par value bond, selling for $87? show work
3. If a firm sold some inventory for cash and left the funds in its bank account, its current ratio would probably not change much, but its quick ratio would decline. Explain why or why not.