1. Suppose that in Japan the interest rate is 4% and US interest rate is 3%. What is the best estimate of the one-year forward exchange premium (discount) on the yen against dollar?
2. Talmud Book Company borrows $18,300 for 90 days at 11 percent interest.
What is the dollar cost of the loan? (Use a 360-day year. Do not round intermediate calculations and round your final answer to 2 decimal places.)