If interest rate parity is in effect what should be the 1


Assume the following information:

1-year interest rate on U.S. dollars = 5.1%

1-year interest rate on Singapore dollars = 10.9%

Spot rate of Singapore dollar = 0.47 USD/SGD

If interest rate parity is in effect, what should be the 1 year forward rate on the SGD?

2. You are considering a project that promises you cash flows of 683 USD at the end of year 1, and 839 usd at the end of year 2. The cost to buy into the project is 1,017.

What is the internal rate of return (IRR) on this project?

Enter answer in percents, accurate to 2 decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If interest rate parity is in effect what should be the 1
Reference No:- TGS02849450

Expected delivery within 24 Hours