Below are the Kuala Lumpur market quotations of spot, 1-month and 3-month rate for RM/BND and RM/CAD. Calculate the:SpotRM2.3870/2.4380/BNDRM3.0490/3.1150/CADOne month forward30/4065/50Interest rateMalaysiaCanadaBruneiThree months2%2.6%1.2%i. 3-month forward outright rates for the BND and CAD quotations.ii. Spot percentage bid-ask spread for RM/BND and RM/CAD.iii. Annualized bid offer 1-month forward percentage for RM/BND and RM/CAD.iv. The amount paid to buy CAD580,000, delivery in 3-months' time.v. Spot cross rates of BND per unit of CAD.marks)

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please have a look. 4th currency on the table is RMB(Chinese yuan) Closing Mid-point. 1 USD to 6.4628 RMB (Chinese yuan) Bid/Offer Spread 1 USD to 549-680 RMB( Chinese yuan) One Month Rate. 1 USD - 6.4658 RMB (Chinese yuan)
Based on market quotes on Canadian dollar (C$) Libor, the six- month C$ Libor and the nine- month C$ Libor are presently at 1.5% and 1.75%, respectively. Based on the 30/360-day count convention, calculate the FRA fixed rate for 6 X 9 FRA. Suppose we entered a receive- floating 6 × 9 FRA at a rate of 0.86%, with notional amount of C$10,000,000 at Time 0. The six- month spot Canadian dollar (C$) Libor was 0.628%, and the nine- month C$ Libor was 0.712%. Also, assume the 6 × 9 FRA rate is quoted in the market at 0.86%. After 90 days have passed, the three- month C$ Libor is 1.25% and the six- month C$ Libor is 1.35%, which we will use as the discount rate to determine the value. Assuming the appropriate discount rate is C$ Libor, calculate the value of the original receive- floating 6 × 9 FRA.
Forward premium: a) The current price of a pound in Toronto is 1.2345. The 30 days price of the pound in Toronto's forward market is 1.1357. What is the annualized forward premium for Canarian dollars? b) Spot and 60 days forward dollar indirect quotes for yen are 100.2468 and 101.0305. What is the annualized dollar forward premium?
Hedging using Swap You want to borrow in U.S. dollars at a fixed rate of interest to match with your investment cash flows. Bank A offers you to borrow in US dollars at 7% or in Australian dollars at LIBOR + 0.5% per annum (adjusted for the differential impact of taxes). You found that Bank A also offer another customer who requires a floating-rate loan to borrow in US dollars at 7.5% or in Australian dollars at LIBOR + 2.0% per annum. Bank A can arrange a swap between you and the other customer with a net 20-basis-point spread. Design a swap that minimizes your borrowing costs and appears equally attractive to you and the other customer. What rates of interest will you and that customer end up paying? (Provide explanation, list your calculation process and use figure to illustrate the swap structure).
The bid and ask bank discount rates on a 180-day US T-bill are 6.25 percent and 6.00 percent, respectively. Determine the T-bid-ask bill's spread. Asap
Yen: Spot and Forward (\/$) Mid Rates Bid Spot Rates 129.87 Forward Rates 1 month 129.68 6 months 128.53 129.82 -20 -136 Ask 129.92 -18 -132 Pound: Spot and Forward ($/£) Mid Rates Bid 1.4484 1.4459 1.4327 1.4481 -26 -160 Ask 1.4487 -24 -154 According to the information provided in the table, the 6-month yen is selling at forward premium or discount? Please show your calculation and show the numbers of premium(or discount) in percentage.
Assume the following information (rates are actual 90-day interest rates, not annualized): Spot rate of Canadian dollar S 0.900 90 day forward rate of Canadian dollar $0.890 90-day Canadian interest rate 3.50% 90-day U.S. interest rate 2.40% Given this information, the yield (percentage return) to a U. 5. investor who used covered interest arbitrage would be ( assume the investor invests $1 million). The yield (percentage return) to a Canadian investor who used covered interest arbitrage would be Group of answer choices
am. 216.
Here are direct spot and forward markets quotes for EUR over three points in time: now (1/1/XX), one month later (2/1/XX), three months later (4/1/XX), and six months later (7/1/XX). 1/1/XX 2/1/XX 4/1/XX 7/1/XX EUR Spot 1.3075 1.3006 1.3605 1.3296 1 Month Forward 1.3271 1.3201 1.3809 1.3496 3 Month Forward 1.3470 1.3399 1.4016 1.3698 6 Month Forward 1.3672 1.3600 1.4226 1.3904 On 1/1/XX, Dell sold a 6 month forward contract of EUR 1,000,000 to Chase. As a result IBM will incur a when the contract expires: O Loss of $37,600 O Profit of $37,600 O Loss of $23,00 O Profit of $23,000
Help me sir very fast
klp.4
Current spot rate of CAD = $0.800. Interest rate in the U.S. = 7.0%. Interest rate in the Canada = 5.00%. If the 1-year current forward rate for CD is $0.820, your covered rate of return will be: ○ 9.675% 2.439% ○ 7.625% ○ 4.390%

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