Compute the missing entries in exchange rate


The following shows interest rates and exchange rates for the U.S dollar and the Philippine peso in 2007. The spot exchange rate is 47.46 pesos= $1. Compute the missing entries:

1 month 3 months 1 year
Dollar interest rate (annually compounded) 5.3 5.3 ?
Peso interest rate (annually compounded)
Forwarded pesos per dollar) 4.15 ? 4.95
Forwarded pesos per dollar ? ? 47.482
Forwarded premium on peso (% per year) ? +0.19

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Microeconomics: Compute the missing entries in exchange rate
Reference No:- TGS058291

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