Major foreign bond market

Major foreign bond market - Big Mac Currencies Every...

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Major foreign bond market US Switzerland England Japan % Appreciation = ((New rate – old rate) / old rate)*100 Measuring premium or discount ▲ = ((forward rate – spot rate)/spot rate) * (12/maturity(months)) Exchange rate forecasting Some one is winning money than some one else is losing money
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Unformatted text preview: Big Mac Currencies Every country has MacDonalds so they should have different rates for each county Real interest rate of the world is the same because every one wants to invest on the interest rate that is highest. Fisher Effect Currency forecasting Euro vs. yen...
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This note was uploaded on 09/08/2010 for the course BUS 187 at San Jose State University .

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