In a currency swap, using the information below, can you calculate the quarterly payments that should be made in Australian dollars? The exchange rate is 1.3 Australian dollars per one US dollar and the notional amount in Australian dollars is $100,000.00 TTM 90 PVF Singapore Dollars PVF US Dollars 0.99 0.98 0.97 0.96 0.98 180 0.94 270 0.93 360 0.89 Please round your answer to the nearest three decimals. Do not type the $ symbol.

In a currency swap, using the information below, can you calculate the quarterly payments that should be made in Australian dollars? The exchange rate is 1.3 Australian dollars per one US dollar and the notional amount in Australian dollars is $100,000.00 TTM 90 PVF Singapore Dollars PVF US Dollars 0.99 0.98 0.97 0.96 0.98 180 0.94 270 0.93 360 0.89 Please round your answer to the nearest three decimals. Do not type the $ symbol.

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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Concept explainers

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.

Question

In a currency swap, using the information below, can you calculate the quarterly payments that should be made in
Australian dollars? The exchange rate is 1.3 Australian dollars per one US dollar and the notional amount in
Australian dollars is $100,000.00
TTM
PVF
90
180
270
360
Singapore Dollars
0.98
0.94
0.93
0.89
PVF
US Dollars
0.99
0.98
0.97
0.96
Please round your answer to the nearest three decimals. Do not type the $ symbol.

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