Question 13 Revisit Later Let us say that USD-INR exchange rate is INR 80/USD. Also, based on the yearly data of the past, the changes in the exchange rate have a yearly mean of 5% and a yearly volatility of 10%. What is the probability that Rupee will depreciate to INR 92 or more in 1 year? Select an option O 6.68% O 16% O 12% O

Question 13 Revisit Later Let us say that USD-INR exchange rate is INR 80/USD. Also, based on the yearly data of the past, the changes in the exchange rate have a yearly mean of 5% and a yearly volatility of 10%. What is the probability that Rupee will depreciate to INR 92 or more in 1 year? Select an option O 6.68% O 16% O 12% O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume there is a bond with the coupon rate of 15.2%, yield to maturity (YTM) of 9.4%, and with the face value of $1,000. Further assume that the bond will mature 9 years from now, and that the interest rate will compound semiannually. What is the bond's current market value? O $1,412.34 O $1,339.25 O $1,392.35 O $1,347.08
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A $1,000 bond pays an interest of $50 each year for 20 years. The bond will mature at the end of 20 years and return the original $1,000. If there is 2% annual inflation during this period, what rate of return does the investor receive? O 4.94% O 2.94% O 1.949% O 5.94%
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