question archive 1) Which of the following statements are true with regard to implied forward rates? They are calculated under the assumption of an arbitrage-free market They can be derived from zero-coupon rates They are not necessarily reliable predictors of future interest rate levels All of the above 2
1) Which of the following statements are true with regard to implied forward rates? They are calculated under the assumption of an arbitrage-free market They can be derived from zero-coupon rates They are not necessarily reliable predictors of future interest rate levels All of the above 2
Subject:FinancePrice: Bought3
1) Which of the following statements are true with regard to implied forward rates?
They are calculated under the assumption of an arbitrage-free market
They can be derived from zero-coupon rates
They are not necessarily reliable predictors of future interest rate levels
All of the above
2. If the Chinese yuan currently trades at 6.8840 to the U.S. dollar, and the Malaysian ringgit currently trades at 4.3395 to the dollar, the implied spot MYR/CNY exchange rate is:
A. 29.8731
B. 2.5445
C. 1.5864
D. 0.6304
3. During December, 1994, the Mexican Government indicated it intended to develue the peso by 14% against the U.S. dollar. Such a devaluation would represent a revaluation of the U.S. dollar against the peso of whatmagnitude?
A. 12.3%
B. 14.0%
C. 16.3%
D. Not enough information has been provided
