Answer to Question #151784 in Finance for sweet candy

Question #151784
A one-year Japanese security is currently yielding 5%. Furthermore, it is expected that the exchange rate between the dollar and the yen is changing from 98 yen to the dollar, to 95 yen to the dollar over the next year. To invest in U.S. security rather than Japanese security, you would need a return at least equal to what value?
1
Expert's answer
2020-12-21T10:52:14-0500

Thus investing in Japanese security not only gives yield of 5% but also currency appreciation of 3.06%. So to invest in US security we need at least both the above returns which will be 8.06%


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS