This preview shows page 1. Sign up to view the full content.
Unformatted text preview: )(1+f e ) i us : rate of return in terms of combined interest rate relative to US dollars i fc : rate of return in terms of a combined interest rate relative to foreign currency f e : annual devaluation rate between US dollars and foreign currency, (positive f e means foreign currency is devalued) Effective interest rate i when number of compounding periods per year is M and annual nominal interest rate is r; i=(1+r/M) M-1...
View Full Document
This note was uploaded on 03/16/2012 for the course FENS 101 taught by Professor Selçukerdem during the Fall '12 term at Sabancı University.
- Fall '12