Baskent Elektrik is one of the largest energy companies in Turkey. If the Baskent Elektrik bonds provide a real rate of return of 3.40%, what is their nominal rate of return? Note: currently, the rate of inflation in Turkey is 2.30%. a. 5.78 percent b. 1.56 percent c. 7.11 percent d. 10.92 percent e. 4.04 percent

Expected inflation in Argentina for next year is 64%. Expected inflation in Europe, for the same period, is 7.0%. Spot rate today is EUR/ARS=158.70. Using PPP, can you estimate the future spot rate in a year from now? (additional information: 1g of gold today=EUR54.94)

Suppose one Euro can purchase 1.25 U.S. dollars today in the foreign exchange market, and currency forecasters predict that the Euro will depreciate by 20% against the US dollar over the next 60 days. How many dollars will a Euro buy in 60 days? (Please show work)

Foreign Exchange Risk and the Cost of Borrowing Swiss Francs.  The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF 1.6 ​million, a​ one-year period, an initial spot rate of SF​ 1.4600/$, a 4.934​% cost of​ debt, and a ​38% tax​ rate, what is the effective​ after-tax cost of debt for one year for a U.S.​ dollar-based company if the exchange rate at the end of the period​ was: a. 1.4600SF​/$ b. 1.4000SF​/$ c. 1.3350SF​/$ d. 1.5730SF​/$