4. A 3x9 FRA contract was set at a rate of 2.5% and settled against WIBOR 6M.Three months later the 6M WIBOR rate was 2.75%. The nominal value of thecontract is PLN 5 million Please calculate the settlement amount (given belowas absolute value) of the contract in 30/360 convention and indicate whichcounterparty will receive this amount.a) 6165.23 PLN and seller of FRA pays to the buyer.b) 6165.23 PLN and buyer of FRA pays to the seller.c) 12 330.46 PLN and seller of FRA pays to the buyer.d) 12 330.46 PLN and buyer of FRA pays to the seller.

Forward Rate Agreement is a financial derivative contract that allows two parties to agree on an…

Answered: contract is PLN 5 million Please…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1- Oman Construction Leasing Company SAOG (OCLC), a subsidiary of Muscat Grant Corporation signed a lease agreement with Muscat Mist Infustructure Companyon January 2020. The leasing company will provide drilling equipment according to following conditions: The term of lease is up to December 2023. The Lease agreement is non-cancelable and requiring equal rental payment of 200,000 OMR at the beginning of each year (Annuity due basis). Muscat Mist has approval for renewal before maturity for two times. The equipment has a fair value at the time of Lease Agreement was around OMR 980000OMR and an economic life of 2 years and no residual value.Muscat Mist pays all the executory costs directly to the third party except for the property tax of OMR 1500 per year which is included as a part of its annual payment to OOLC.Muscat MistInfustructure incremental borrowing rate is 12% per year.Muscat Mist depreciates similar equipment that it owns at a straight ling method depreciation.The targeted…
Q29
What are the forms and characteristics of hedge accounting Bank B granted on 1.10.20X1 to company D a loan of €200,000 for 10 years with a fixed interest rate of 3%. The loan will be serviced with equal semi-annual installments plus interest that will be paid every 31/3 and 30/09 of each year, while bank B prepares interim financial statements. Wanted:Make the journal entries for the years 20X1-20X2 for company B(for calculations use a period of 90 days for each quarter and 360 days for the year)
(AICPA) 6. On January 1, 20x8, Harrow Co. as lessee signed a five-year noncancellable equipment lease with annual payments of P100,000 beginning December 31, 20x8. The implicit interest rate is 10%. How much is the interest expense for the year ended December 31, 20x8? a. 37,900 (AICPA) b. 27,900 с. 24,200 d. 0
In Note 11, of its 2018 financial statements, Chipotle (CMG) reported the following future operat- ing lease information: E5.12 Contractually required future minimum cash lease payments under existing operating leases as of December 31, 2018, are as follows: $ 294,191 296,579 294,941 295,290 2019 2020 . 2021 2022 290,980 2,478,397 2023 Thereafter. Total minimum lease payments $3,950,378 a. Assuming a discount rate of 5 percent, estimate the unrecognized asset and liability for assets acquired under operating leases for CMG at December 31, 2018. b. Given the estimated unrecognized liability calculated in part a., what impact does including this amount have on the liabilities of CMG reported on the balance sheet?
See below information from exercise 12-9
A contract between two parties (company X & Y) was created such that in return for services rendered, company X would provide payments of $15,000 in 8 months, $35,000 in 16 months, and $40,000 in 24 months. However, a clause was inserted in the contract that allowed company X to pay two equal lump sum payments in months 30 and 36. If interest on the contract is 6.5% compounded annually, determine the value of the lump sum payments that should be written in the contract. When entering your answer, round your values to two decimal places, and use a $ symbol as well as the correct comma separator. For example $12,345.67 Answer: Answer
A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer. O True O False
Refinancing agreement: Entity C’s liabilities as of December 31, 20x1 (current year-end) include the ff: P10,000,000, 8-year loan maturing on December 31, 20x2. Entity C intends to refinance this liability on a long-term basis on February 2, 20x2. Entity C’s 20x1 financial statements were authorized for issue on March 31, 20x2 P6,000,000 loan that is payable on demand. There is no indication as of December 31, 20x1 that the creditor will demand repayment within the next 12 months. P14,000,000 loan due on December 31, 20x9. Entity C breached a loan provision accelerating the repayment of this loan within the next 12 months. However, on January 12, 20x2, the creditor granted entity C a 12-month grace period to rectify the breach, within which the creditor will not demand immediate payment. Requirement: Compute for the total current liabilities as of December 31, 20x1.
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Q. 1. (a) Mr. A is planning to buy a bond which is priced at Rs 2000. He would receive Rs 220 at the end of one year as principle plus interest. Mr. A to buy this bond? Explain your answer. b)What constitutes the current account of the balance of paymentaccount of a country? c) Explain the "Fundamental Balance of Payment Identity"? How does the official settlement balance ensure this identity?

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contract is PLN 5 million Please calculate the settlement amount (given below as absolute value) of the contract in 30/360 convention and indicate which counterparty will receive this amount.