Unformatted text preview: Brian Lin D01278742 Week 7 Homework Chapter 17 Questions Problem 17-2 Six-month T-bills have a nominal rate of 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month forward exchange rate? T-Bill Nominal Rate = 7% J-Bond Nominal Rate = 5.5% 1 Yen = $0.009 1 US = 111.11 Yen 6 Month US Rate = 3.5% 6 Month Japan Rate = 2.8% 6-Month Forward Exchange Rate US Dollar/Yen = (1+3.5%)*0.009/(1+2.8%) 6-Month Forward Exchange Rate US Dollar/Yen = 0.00907 Problem 17-3 A television set costs $500 in the United States. The same set costs 550 Euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? TV = $500 TV = 550 Euro Spot Exchange Rate b/w Euro and US Dollar = 550/500 or 500/550 Spot Exchange Rate b/w Euro and US Dollar = $1 = 1.1 Euro and 1 Euro = $0.9091 Problem 17-10 Early in September 1983, it took 245 Japanese yen to equal $1. Early in September 1983, it took 245 Japanese yen to equal $1....
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Clete Blakeman is the referee for the Thursday night contest in Cincinnati between the Texans and Bengals. This week also marks the opening of Mercedes-Benz Stadium in Atlanta where the Falcons will play their home opener against the Packers on Sunday night. The Chargers will also play in their first home game at StubHub Center in Carson, Calif., against the Dolphins.
John Hussey’s crew is off this week.
Thursday, Sept. 14
- Texans at Bengals NFLN — Clete Blakeman
Sunday, Sept. 17
- Browns at Ravens — Gene Steratore
- Bears at Buccaneers — Ron Torbert
- Vikings at Steelers — Pete Morelli
- Patriots at Saints — Craig Wrolstad
- Eagles at Chiefs — Terry McAulay
- Titans at Jaguars — Ed Hochuli
- Cardinals at Colts — Carl Cheffers
- Bills at Panthers — Walt Coleman
- Jets at Raiders — Jeff Triplette
- Dolphins at Chargers — Tony Corrente
- 49ers at Seahawks — Bill Vinovich
- Washington at Rams — Jerome Boger
- Cowboys at Broncos — Brad Allen
- Packers at Falcons NBC — Walt Anderson
Monday, Sept. 18
- Lions at Giants ESPN — John Parry