Short Project Four 2007

Short Project Four 2007 - Short Project Four To complete...

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Short Project Four To complete this assignment I recommend using a website that has a currency calculator like x-rates.com and Bloomberg.com 1.) Using a currency calculator on a financial web page find the current exchange rate between the US$ and the following currencies? Euro: 1 American dollar is 0.68018 Euro Japanese Yen: 1 American dollar is 111.77 Japanese Yen Brazilian Real: 1 American dollar is 1.758 Brazilian Real UK Pound: 1 American dollar is .490509 British Pound 2.) Over the last 120 days how have the following currencies done against the US $ (have they gained or lost value)? Hint: x-rates.com lets you display the results in Table or Graph form. If you choose Graph then you can display the last 120 days. You can also copy and paste the currency graphic into your answer.
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These graphs all have an average decrease over the past 120 days; therefore, the American dollar’s value is declining in each of these countries. Every single one of these currencies are gaining value on the American Dollar. 3.) Bloomberg.com provides bond interest rates and prices on a few select nations. Here is the link that takes you directly to their interest rates in other nations. http://bloomberg.com/markets/rates/index.html When you first access the page you’ll see US interest rates. You simply need to click on the tab with name of the nation you want to look in order to pull up that nation’s interest rates. There is a lot a person can observe by looking at any changes in interest rates. In the case of bonds that have already been issued we need to focus on changes in the prices of the bonds and the yield (which provides a measure of the interest provided for the price paid for the bond). Here I want you to work with changes in the bond prices and yields . If interest rates move upward on new bonds than the price on bonds already in the market will fall (since interest rates on those bonds are fixed and can’t rise, so the seller has to offer the bond at a discount). The
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Short Project Four 2007 - Short Project Four To complete...

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