(Answered) 1 the annual interest rate on the canadian dollar is 9 the

Finance

1. The annual interest rate on the Canadian dollar is 9%. The forecast of the Canadian dollar's value for the next year is shown below. Calculate the effective financing rate for a U.S. company. Show how you derive the answer.

Percentage Change Probability
    -1.0%                  15%
    -1.5%                  30%
    -2.0%    55%

2.The annual interest rate on the Swiss franc is 4%. It is expected to appreciate 3% over the next year. Calculate the effective financing rate for a U.S. company. Show how you derive the answer.

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