Question

nework 3 Question 14 (of 15) value 6.66 points Suppose the spot exchange rate for the Hungarian forint is HUF204.70. The inflation rate in the United States is 1.9 percent per year and is 4.9 percent in Hungary. What do you predict the exchange rate will be in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Exchange rate HUF IS What do you predict the exchange rate will be in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Exchange rate HUF What do you predict the exchange rate will be in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) HUF Exchange rate References eBook & Resources Section 31 Difficulty: 1 Basic Worksheet Check my work Tume here to search

Answer 1

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ke - Microsoft Excel (Product Activation Failed) Formulas File Home Insert Page Layout Data Review View Add-Ins * Cut E AutoSum - - 11 Calibri Wrap Text: General EE Copy - E Fill- E E Sort & Find & Paste B I U - 4.0 .00 .00 .0 Conditional Format Cell Insert Delete Format Merge & Center Format Painter Clear Filter Select Formatting - as Table - Styles Styles Clipboard Font Alignment Number Cells Editing fe SQ30 SQ SU SL SM SN SO SP SR SS ST SV SX SY SZ TA 15 16 purchasing power parity 17 So X (1 +hfc - hus))^T 18 Ft = 19 So = hfc = 4.90% INFLATION RATE IN HUNGARY 20 204.7 hus = 1.90% INFLATION RATE IN US 21 22 EXCHANGE RATE IN ONE YEAR = 204.70 X (1+ 0.049 -0.019)^ 1 = 23 210.84 24 204.70 X (1+ 0.049 -0.019)^ 2 = 25 EXCHANGE RATE IN TWO YEARS = 217.17 26 204.70 X (1+ 0.049 -0.019)^ 5 = 27 EXCHANGE RATE IN FIVE YEARS = 237.30 28 29 30 31 32 33 LEASING PV, FV, ANNUITY YIELD bond portfolio DIV YIELD I « O RESI DIV POLICY CoNvexity beta DIR right clean NAME DGM port future INDEX INTL CAP BUD SANDRINE WACC EO U 120% Rea ferences: IP17 03:27 * 6 10 ENG ----- 05-12-2019