Author Question: Explain what factors determine the expected return on a foreign bond. What will be an ideal ... (Read 103 times)

washai

  • Hero Member
  • *****
  • Posts: 523
Explain what factors determine the expected return on a foreign bond.
 
  What will be an ideal response?

Question 2

Which of the following assumptions best characterized the assumption about how individuals formed expectations of inflation by the early 1970s?
 
  A) Expected inflation for the current year was smaller than the previous year's inflation rate.
  B) Expected inflation for the current year was approximately equal to the previous year's inflation rate.
  C) Expected inflation for the current year was less than the previous year's inflation rate.
  D) Expected inflation for the current year equal to the average inflation rate over the past five years.
  E) Expected inflation for the current year equal to the average inflation rate over the past ten years.



Kedrick2014

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

The current exchange rate, the current foreign interest rate, and the future expected exchange rate.

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

For a complete list of videos, visit our video library