Please show the essential calculations, the final results, and the interpretation of the results if necessary.
2) The nominal yield on 6 month T-bills is 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month forward exchange rate?
6) Suppose the exchange rate between U.S. dollars and the Swiss franc is SFr1.6 = $1 and the exchange rate between the dollar and the British pound is £1 = $1.50. What then is the cross rate between francs and pounds?
8) In the spot market, 7.8 pesos can be exchanged for 1 U.S. dollar. A pair of headphones costs $15 in the U.S. If purchasing power parity holds, what should be the price of the same headphones in Mexico?
9) Your Boston headquartered manufacturing company, Wruck Enterprises, obtained a 50 million-peso loan from a Mexico City bank last month to fund the expansion of your Monterrey, Mexico plant. When you took out the loan the exchange rate was 10 U.S. cents per peso, but since then the exchange rate has dropped to 9 U.S. cents per peso. Has Wruck Enterprises. Made a gain or a loss due to the exchange rate change, and how much? Note that your shareholders live in the United States.
11) Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today’s spot rate. The firm’s financial manager, James Desreumaux, has noted the following current spot and forward rates:

                        U.S. Dollar / Swiss Franc    Swiss Franc / U.S. Dollar
Spot                               1.6590                                     0.6028
30-day forward             1.6540                                     0.6046
90-day forward             1.6460                                     0.6075
18- day forward             1.6400                                     0.6098

On the same day Desremaux agrees to purchase 15,000 more watches in 3 months at the same price of 1 million Swiss francs.
a. What is the cost of the watches in U.S. dollars if purchased at today’s spot rate?
b. What is the cost in dollars of the second 15,000 batch if payment is made in 90 days and the spot rate at that time equals today’s 90-day forward rate?
c. If the exchange rate is 0.50 Swiss francs per dollar in 90 days, how much will Desremeaux have to pay in dollars for the watches?
14) The South Korean multinational manufacturing firm, Nam Sung Industries, is debating whether to invest in a 2-year project in the Unites States. The project’s expected dollar cash flows consist of an initial investment of $1 million with cash inflows of $700,000 in year one and $600,00 in year two. The risk-adjusted cost of capital for this project is 13%. The current exchange rate is 1,050 won per dollar. Risk free interest rates in the United States and S. Korea are:

               1-year    2-year
U.S.          4.0%    4.25%
S. Korea    3.0%    3.25%

a. If this job were instead undertaken by a similar U.S.-based company with the same riskadjusted cost of capital, what would be the net present value and rate of return generated by this project?
b. What is the expected forward exchange rate 1 year from now and 2 years from now? (Take the perspective of the Korean company when identifying home and foreign currencies and direct quotes of exchange rates.)
c. If Nam Sung undertakes the project, what is the net present value and rate of return of the project for Nam Sung?

Please show the essential calculations, the final results, and the...