Forex And Interest Rates Illustration 1
An Indian firm would like to borrow 5 million Rupees from US market (in US Dollars) for 6 months.
Spot USD INR 48.8840/48.8860
6-month forward USD INR 49.2340/49.2360
USA interest rates 4.25% – 4.50%
Calculate the net interest payable in Indian Rupees.
(Ans.: Rupees 149.314)
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