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.(

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


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?

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

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

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.


Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.


Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?


Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.


Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.


Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !


Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.

Open chat