International banking (please review the questions before you bid)

 

1  Instructions

Please read the data definitions in the spreadsheet.  You may want to compute means, medians,and  standard  deviations  of  the  data  you  produce.   For  this  exercise,  we  will  mainly  work  in logged  rates.(https://goo.gl/Dso1ix)

Answer  the  following  questions  in  5  pages  or  less,  plus  supporting  exhibits  if

necessary/desired.

2  Case Study Questions

1.  What is the quoted currency?

2.  What does one learn from the data in column I about the JPY vs.  the USD over this time period?

3.  In  column  K,  Compute  an  estimate  of  the  real  90  Day  Euro  Yen  Rate.   In  column  L, Compute an estimate of the real 90 Day Euro Dollar Rate.  In column M, compute the difference in these real rate estimates (Japan minus US). Describe what you learn from these data, and what they imply for the borrowing program at BID.

4.  Discuss the relationship between inflation and interest rates in each currency.

5.  In column N, compute  the natural logarithm of the spot exchange rate.  In column  O, compute  the  natural  logarithm  of  the  3  month  forward  exchange  rate.   In  Column  P, compute the difference between the natural logarithm of the 3 month forward exchange rate and the natural logarithm of the realized spot exchange rate ln(Et+3), where Et+3 refers to the spot rate 3 months ahead.  What do you learn from these data?

6.  In column Q, compute the difference between the 3 month nominal interest rates in Japan and the US (Japan minus US). In column R, compute the difference between column Q, and the quarterly forward premium in column I. This is (R JPY−RUSD)−ln(F/E).  What do you learn from these data?

7.  In column S, compute the difference between (Japanese quarterly inflation  US quarterly inflation) and (ln(Et+3)−ln(Et)).  What do you learn from these data?

8.  Compute the following: 3 month JPY interest rate−3 month dollar interest rate+ln(Et)−ln(Et+3).  This is equivalent to (RJPY−RUSD)−ln(Et+3/Et).  What do you learn from these data?

9.  How should BID analyze its effective borrowing costs?  Under what circumstances should BID expect to prefer borrowing in one currency rather than the other?  If it were issuing the note now (at the end of the data update), what would you recommend it to do?

Premium Custom Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.