Triangle arbitrage can occur when the ________ rate between two currencies is not ________ to the ratio of the two direct rates.
A) cross; equal
B) spot; equal
C) cross; less than
D) spot; less than
E) cross; greater than
A) cross; equal
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Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan?
A. 8.46% B. 8.90% C. 9.37% D. 9.86% E. 10.38%
A model is a simplified representation of a simple entity or phenomenon.
Answer the following statement true (T) or false (F)
According to the Worker Adjustment Retraining and Notification Act, notice of closure or layoff affecting 50 or more full-time workers must be given to the highest elected local official.
Answer the following statement true (T) or false (F)
Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic bond in a country with a 28.00% withholding tax on interest paid to foreigners. If 10.50% after-tax is the investor's required return, what before-tax rate would the domestic bond need to pay to provide the required after-tax return?
A. 15.46% B. 16.33% C. 16.92% D. 12.83% E. 14.58%