Problem: The following table 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. Complete the missing entries:
|
|
1 month |
3 months |
1 year |
| dollar interest rate (annually compounded) |
|
5.3 |
5.3 |
? |
|
|
|
|
|
| Peso interest rate (annually compounded) |
|
4.15 |
? |
4.95 |
|
|
|
|
|
| Forward pesos per dollar |
|
? |
? |
47.482 |
|
|
|
|
|
| Forward premium on peso (% per year) |
|
? |
0.19 |
? |