FIN 534 QUIZ 10

FIN 534 QUIZ 10 - FIN 534 QUIZ 10 (CHAPTER 17) Question 1 2...

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FIN 534 QUIZ 10 (CHAPTER 17) Question 1 2 out of 2 points Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor? Answer Selected Answer: -7.92% Correct Answer: -7.92% Question 2 2 out of 2 points Suppose hockey skates sell in Canada for 105 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If
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purchasing power parity (PPP) holds, what is the price of hockey skates in the United States? Answer Selected Answer: $74.55 Correct Answer: $74.55 Question 3 2 out of 2 points A box of candy costs 28.80 Swiss francs in Switzerland and $20 in the United States. Assuming that purchasing power parity (PPP) holds, what is the current exchange rate? Answer Selected Answer: 1 U.S. dollar equals 1.44 Swiss francs Correct Answer: 1 U.S. dollar equals 1.44 Swiss francs Question 4 2 out of 2 points Which of the following statements is NOT
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CORRECT? Answer Selected Answer: The term Eurobond applies only to foreign bonds denominated in U.S. currency.
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This note was uploaded on 01/14/2012 for the course FIN 534 taught by Professor Nalla during the Spring '08 term at Strayer.

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FIN 534 QUIZ 10 - FIN 534 QUIZ 10 (CHAPTER 17) Question 1 2...

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