Question 19 Please use the data below, to answer the following question. Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit in US: Line of credit in Canada: The current spot rate for CAD (SO): 1-year forward rate for CAD (F): O CAD 219,804 USD 200,000 Your covered interest arbitrage profit is: USD 10,000 7% 5% O CAD 9,804 USD 10,000,000 CAD 10,000,000 $0.8000 $0.816.

Question 19 Please use the data below, to answer the following question. Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit in US: Line of credit in Canada: The current spot rate for CAD (SO): 1-year forward rate for CAD (F): O CAD 219,804 USD 200,000 Your covered interest arbitrage profit is: USD 10,000 7% 5% O CAD 9,804 USD 10,000,000 CAD 10,000,000 $0.8000 $0.816.

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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3 6 Consider the excerpt from a credit card disclosure form below. Interest Rate and Interest Charges 6.99% or 10.99% introductory APR for one year, based on your creditworthiness. Annual Percentage Rate (APR) for Purchases After that your APR will be 15.99%. This APR will vary with the market based on the Prime Rate During the first year (while the introductory APR is still in effect), what is the approximate difference in total interest paid on an average balance of $1,300 by al customer with poor creditworthiness as compared to a customer with excellent creditworthiness? Make sure you.write down any work, calculations, or reasoning that you used to get to your solution. Your Answer: Ammine
Given: So = INR 83/US$ F90 days = INR 83.2834/US$ 90-day iIndia = 6.91% 90-day ius = 5.34% a. there is no interest rate parity O b. there is total interest rate parity Oc. there is a possibility of triangle arbitrage O d. there is approximate interest rate parity
Question 4 You have been offered a $500k 7/1 Hybrid ARM Loan with 1pt in origination fees, teaser of 4.8%, margin of 288bp, and future composite rates indexed to LIBOR, which was 3.24% at the time of origination. What is the size of the óth monthly payment of this ARM Loan? Please indicate your answer to the cents place, with two digits right of the decimal. 2,623.33
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh
fx D. Amount of loan: %24 50,000 Annual payment: %24 10,000 Interest rate: 8% 6. How many years will it take to pay off the loan?
2 Quantitative Problem: Bank 1 lends finds at a nominal rate of 6% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank would like to change the same effective amual rate as Bank 1, what nominal interest rate will they charge their customers? Do not round intermediate calculations. Rand your answers to three decimal WL places. wer maiteme SA A ngu? A 2118 tax f 40 THE # AALIY S * مجلسی W
View Policies Current Attempt in Progress Carla Vista Cosmetics management is setting up a line of credit at the company's bank for $5 million for up to two years. The interest rate is 6.30 percent and the loan agreement calls for an annual fee of 63 basis points on any unused balance for the year. If the firm borrows $2.8 million on the day the loan agreement is signed, what is the effective rate for the line of credit? (Roûnd answer to 2 decimal places, e.g. 12.25%.) Effective interest rate eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Given Principal $21, 000, Interest Rate 11%, Time 240 days (use ordinary interest) On 100th day, $8,000 On 180th day, $4,500 Partial payments: a. Use the U.S. Rule to solve for total interest cost. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Total interest cost %24 b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) On 100th day On 180th day Balance after the payment 2$ 24 c. Use the U.S. Rule to solve for final payment. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Final payment %24 5 of 14 Next > < Prev
You have observed the following returns over time: year Stock X % Stock Y % Market % 2006 14 13 12 2007 19 7 10 2008 -16 -5 -12 2009 3 1 1 2010 20 11 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. What are the betas of Stocks X and y? What are the required rates of return on Stocks X and Y? What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? If Stock X's expected return is 22%, is Stock X under- or overvalued?
What is the maximum amount granted as an unsecured loan given the below parameter? Net Sales: CHF 2'000'000 FCF: CHF 200'000 Credit appetite of lender: 6 years Interest rate after taxes: 4.0% Calculatory tax rate: 25%
5: Calculate Interest Coverage Ratio from the following information Net Profit (after taxes) Rs. 1,00,000 Fixed interest charges on long term borrowing = Rs. 20,000 Rate of Income Tax 50%
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