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Sagot :
A)
- Firstly convert $3000000 into CAD
So, CAD is 3405221.33938
- Invest CAD in Canada 5% for 1 year
- In t= 1yr realize canadian investment with interest so, CAD on maturity
= CAD 3405221.33938 (1+ 0.05)
= CAD 3575482.40634
- Again now convert CAD into US $ so, equivalent US $ realised on conversion = CAD 3575482.40634 * $0.865/ CAD
= $ 3092792.28148
- US repayment = $ 3000000*(1+ 0.02)
= $ 3060000
That's why,
Profit over the year = $3092792.28148- $3060000
= $32792.28148
B) doesn't depreciates relative to USD
C) appreciates relative to Canadian dollar
D) BEEX = US$ borrowings to be repaid with interest/ CAD realized with interest on maturity
= $3060000/ CAD 3575482.40634
= 0.8558
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