Question

In problems related to Engineering Economics, if an interest rate is given as six percent, how would you plug the interest rate in an appropriate equation? Please write the correct format of six percent interest rate that you will use in the equation.

Answer #1

On August 8th the six-month risk-free rate of interest in
Switzerland was 6 percent. If the spot exchange rate for dollars
for Swiss francs is 0.9241 and the six-month forward exchange rate
is 0.9255, what would you expect the U.S. six-month risk-free
rate to be?
The U.S. six-month risk-free rate is______% (round to decimal
places)

Explain the ethical problems related to the conflict of
interest involving the sell-side, buy-side, and independent
research firms. Do you think that MW reports can be fully trusted
and used for investment decisions?
Relating to question 1 above, identify the parties involved in
the investment process and describe their roles.
Are there any alternatives or any potential solutions that
investors can use to alleviate the problems of analysts’ conflict
of interest when they make their investment decisions? Please
report as...

Assume that the U.S. one-year interest rate is 5 percent and the
one-year interest rate on euros is 7 percent. You have $100,000 to
invest and you believe that the international Fisher effect (IFE)
holds. The euro's spot exchange rate is $1.20. What will be the
yield on your investment if you invest in euros (please use 4
decimal points)? *Since you believe that IFE holds, you can find
the forward rate (or the spot rate in the future) based...

How to calculate nominal interest rate given borrowed principal
of $100,000, fixed rate mortgage for 30 years, compounded monthly,
and payments due at the end of each month. What is the nominal
interest rate if you pay $599.55 per month.
Please do not use excel! I need to know what formula to use to
calculate this. Thank you.

Suppose that the annual interest rate is 2.47 percent in the
United States and 4.25 percent in Germany, and that the spot
exchange rate is $1.60/€ and the forward exchange rate, with
one-year maturity, is $1.58/€. Assume that an arbitrager can borrow
up to $2,750,000 or €1,718,750. If an astute trader finds an
arbitrage, what is the net profit in one year?
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An Italian currency dealer has good credit and can borrow
€937,500 for one year. The one-year interest...

Suppose you are going to receive $13,800 per year for six years.
The appropriate interest rate is 8.7 percent.
What is the present value of the payments if they are in the
form of an ordinary annuity?
What is the present value if the payments are an annuity
due?
Suppose you plan to invest the payments for six years. What is
the future value if the payments are an ordinary annuity?
Suppose you plan to invest the payments for six...

Suppose you are going to receive $14,400 per year for six years.
The appropriate interest rate is 9.5 percent.
a. What is the present value of the payments if they are in the
form of an ordinary annuity?
b. What is the present value if the payments are an annuity
due?
Suppose you plan to invest the payments for six years.
c. What is the future value if the payments are an ordinary
annuity?
d. What is the future value...

Assume you deposit $2,500 every six months at 10 percent
compounded semi-annually. How much will you have at the end of 10
years?
Note: Please use Excel and show the formula to find the answer.
I'm guessing it would be using the future value function, but I
didn't know how to set it up. Thanks

Given a 7.00 percent interest rate, compute the year 10 future
value of deposits made in years 1, 2, 3, and 4 of $1,500, $1,700,
$2,000, and $2,000.
Consider a $1,500 deposit earning 4 percent interest per year
for 7 years. How much total interest is earned on the original
deposit (excluding interest earned on interest)?
At the beginning of the month, you owned $6,700 of Company G,
$9,100 of Company S, and $3,200 of Company N. The monthly returns...

Assume the current interest rate on a one-year Treasury bond
(1R1) is 4.50 percent, the current rate on a two-year Treasury bond
(1R2) is 5.25 percent, and the current rate on a three-year
Treasury bond (1R3) is 6.50 percent. If the unbiased expectations
theory of the term structure of interest rates is correct, what is
the one-year interest rate expected on Treasury bills during year 3
(E( 3r1) or 3 f1)?
please show how to do in excel

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