Suppose that the US interest rate is 8% per year, and that the Japanese interest rate is 4% per year. Suppose further that the exchange rate is Ey/s = Y106/$ and the 6 month forward rate is Fy/$ = Y103.5/$. a) Is covered interest parity (CIP) satisfied?
b) If CIP is not satisfied, explain how you would perform covered interest arbitrage (CIA) to earn a profit.
c) How much profit did you make performing CIA if you initially borrowed $1,000,000?

What is the difference between secure bonds and naked bonds?

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)