Question

Mougoué Corp. frequently invests excess funds in the Central African CFA fr market. One year ago, Mougoué Corp. invested in a one-year franc money m that provided a yield of 6.00 percent. At the end of the year, when Mougou converted the franc to dollars, the franc had appreciated from $.0017 to $. the effective yield earned by Mougoué Corp? 6 A.60O percent B. 17.16 percent C. 14.59 percent D. 18.47 percent- E. -6.47 percent Mougoué Corp. frequently invests excess funds in the Central African CFA frane money market. One year ago, Mougoué Corp. invested in a one-year franc money market securit that provided a yield of 6.00 percent. At the end of the year, when Mougoué Corp. converted the franc to dollars, the franc had appreciated from $.0017 to $.0019. What is the effective yield earned by Mougoué Corp? A. 6.00 percent B. 17.16 percent C. 14.59 percent D. 18.47 percent 9. E. -6.47 percent

Answer 1

Option D
Effective yield earned by Mougoue Corp is given as equal to=1/0.0017*1.06*0.0019-1
=18.4706%