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Category: Finance
If the eastern branch and the western branch worked together, the eastern branch could loan its $15 million to the western branch. Nevertheless, one could argue that the branches could not take advantage of interest rate differentials or expected exchange rate effects among currencies. Given the data provided in this example, would you recommend th...
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Category: Finance
The Bloomberg website (www.bloomberg.com) provides interest rate data for many different foreign currencies over various maturities. As a cash manager of an MNC based in the United States that has extra dollars that can be invested for one year, where would you invest funds for the next year? Explain.
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Category: Finance
The Bloomberg website (www.bloomberg.com) provides interest rate data for many different foreign currencies over various maturities. If you were working for a foreign subsidiary based in Japan and could invest Japanese yen for one year until the yen are needed to support local operations, where would you invest the yen? Explain.
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Category: Finance
Logan decided to use the excess cash to pay off the British loan. However, a friend advised him to invest the cash in British Treasury bills, stating that "the loan provides an offset to the pound receivables, so you would be better off investing in British Treasury bills than paying off the loan." Is the friend correct? What should Logan do?
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Category: Finance
The Bloomberg website (www.bloomberg.com) provides interest rate data for many different foreign currencies over various maturities. Go to the Markets section and then to Rates & Bonds, and click on a country to review its interest rates. Review the one-year yields of currencies. Assume that you could invest at the quoted yield for each currency. W...
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