give answe the both questions. Suppose that an Apple iPhone costs $240 in the United States, £65 inthe United Kingdom, and ¥35,000 in Japan.If the exchange rate between the pound and the dollar is $1.80 = £1, thereal exchange rate between the pound and the dollar is. (Enter yourresponse rounded to two places.) Suppose that the current exchange rate between the yen and the dollaris ¥110 = $1 and that the interest rate is 4% on a one-year bond in Japanand 3% on a comparable bond in the United States. According tothe interest-rate parity condition, what do investors expect the exchangerate between the yen and the dollar to be in one year?=$1. (Round your response to twoThe exchange rate will be ¥decimal places.)

The relation between interest rate and currency exchange rates where appreciation of each currency…

Suppose that an Apple iPhone costs $240 in the United States, £65 in the United Kingdom, and ¥35,000 in Japan. If the exchange rate between the pound and the dollar is $1.80 = £1, the real exchange rate between the pound and the dollar is. (Enter your response rounded to two places.)

Suppose that an Apple iPhone costs $240 in the United States, £65 in the United Kingdom, and ¥35,000 in Japan. If the exchange rate between the pound and the dollar is $1.80 = £1, the real exchange rate between the pound and the dollar is. (Enter your response rounded to two places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

give answe the both questions.

Suppose that an Apple iPhone costs $240 in the United States, £65 in
the United Kingdom, and ¥35,000 in Japan.
If the exchange rate between the pound and the dollar is $1.80 = £1, the
real exchange rate between the pound and the dollar is. (Enter your
response rounded to two places.)

Suppose that the current exchange rate between the yen and the dollar
is ¥110 = $1 and that the interest rate is 4% on a one-year bond in Japan
and 3% on a comparable bond in the United States. According to
the interest-rate parity condition, what do investors expect the exchange
rate between the yen and the dollar to be in one year?
=$1. (Round your response to two
The exchange rate will be ¥
decimal places.)

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