Question: Only the ones I got wrong Use Table_221 to answer the following questions: a. How many Brazilian reals do you get for your dollar? (Round

Only the ones I got wrong
Only the ones I got wrong Use Table_221 to answer the following
questions: a. How many Brazilian reals do you get for your dollar?

Use Table_221 to answer the following questions: a. How many Brazilian reals do you get for your dollar? (Round your answer to 3 decimal places.) b. If the 1-year forward rate on the real is BRL3.708 = USD1, is the real at a forward discount or premium? c. If the 1-year interest rate on dollars is 1.5%, what will be the interest rate on the real? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) d. According to the expectations theory, what is the expected spot rate for the real in 1 year's time? (Round your answer to 3 decimal places.) e. According to purchasing power parity, what is the difference in the expected rate of price inflation in the United States and the rate In Brazil? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. a. BRL b. c. d. $1 Is the real at a forward discount or premium? Interest rate on the real Expected spot rate: 1 USD Difference in expected inflation 3.484 Forward discount 1.78 % 1.834 1.07% BRL e. TABLE 22.1 Exchange rates in country April, 2018 Currency Exchange Rate Europe Eurozone countries Euro (EUR or ) 1.217 Sweden Krona (SEK) 8.561 Switzerland Franc (CHF) 983 United Kingdom Pound (GBP or ) 1.393 Americas Brazil Real (BRL) 3.484 Canada Dollar (CAD) 1.284 Mexico New peso (MXN) 18.846 Asia/Africa Australia Dollar (AUD) 1.322 China Yuan (CNY) 6.324 China (Hong Kong) Dollar (HKD) 7.847 India Rupee (INR) 66.910 Japan Yen (JPY or ) 109.430 South Africa Rand (ZAR) 12.433 South Korea Won (KRW) 1,081.200 Direct quotes number of U.S. doilars per unit of foreign currency Other quotes are indirect (units of foreign cur rency per US dollar Source: The New York Times, April 26, 2018

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