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The spot rate between the U.S. dollar and the Talwan dollar is $1= TWD30.205. Assume the Interest rate in the United States is 10 percent and in Talwan is 7 percent. What should be the 6-month forward exchange rate? (Do not round Intermediate calculations and round your final answer to 4 decimal places.)

The spot rate between the U.S. dollar and the Talwan dollar is $1= TWD30.205. Assume the Interest rate in the United States is 10 percent and in Talwan is 7 percent. What should be the 6-month forward exchange rate? (Do not round Intermediate calculations and round your final answer to 4 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The spot rate between the U.S. dollar and the Talwan dollar is $1 = TWD30.205. Assume the interest rate in the United States Is 10 percent and in Taiwan is 7 percent. What should be the 6-month forward exchange rate? (Do not round Intermediate calculations and round your final answer to 4 decimal places.) per TWD Forward exchange rate GA
Transcribed Image Text:The spot rate between the U.S. dollar and the Talwan dollar is $1 = TWD30.205. Assume the interest rate in the United States Is 10 percent and in Taiwan is 7 percent. What should be the 6-month forward exchange rate? (Do not round Intermediate calculations and round your final answer to 4 decimal places.) per TWD Forward exchange rate GA
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