Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 8, Problem 33P

(a):

To determine

Calculate the estimated exchange rate.

(b):

To determine

Calculate the new estimated exchange rate.

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On 26 May 2021 it cost $1.41 (USD) to buy one British Pound, while the 10-year British Government Bond interest rate was 0.755% and the US Government Bond 10-year interest rate was 1.56%. Six months later, on 26 November 2021 it cost $1.33 (USD) to buy one British Pound, while the 10-year British interest rate was 0.839% and the US 10-year rate was 1.51%. Is the change in the USD, British Pound exchange rate consistent with the International Fisher Effect (IFE)? Why or why not?
USD 0.0202675=1 INR and USD 2.59713=1 OMR. The OMR is not quoted against INR. You are required to identify the following;  a)Determine the Exchange Rate for OMR/INR? How much INR the customer will be receiving if exchange OMR1,500?
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