alculate the market price of the following treasury bill. issuer: Omani government. issue date: 6 June 2021. maturity date: 21 August 2021. The discount rate is 0.058. Select one: a. 98.79% b. All the given choices are not correct c. 26.10% d. 99.98% e. 101.69%
Q: On November 1, 2020, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a…
A: In the given problem, here the Yuan is selling at a discount in the forward Market where( Forward…
Q: It is 25 July 2022; you observe two treasury bills Maturity 25 September 2022, Price 99.7985…
A: The discount factors and spot rates: The discount factor is the factor used to arrive at the present…
Q: The 60-day forward rate for the Canadian dollar is $1.07/C$, while the current spot rate of the…
A: The stock market is dealing with two markets: Primary market or secondary market. Under primary…
Q: Rates quoted by USB Bank on (ZAR/EUR): Bid – Offer Spot (ZAR/EUR) (Spot date: 15 April 2021):…
A: Bid-offer is the price quotations of securities or assets. Bid represents the amount which buyer is…
Q: What is the nominal interest rate on a one-year treasury bill with a face value of $1 million if its…
A: Treasury bills are issued by the government when there is a shortage of money with the government.…
Q: How is the cost of hedging payable will be if a 90-day forward rate of the euro completely estimate…
A: If we are able to completely identify the future spot rate in 90 days from now, then the entity will…
Q: ndian rupee forward contracts. The Indian rupee (INR) is currently trading at INR 50 = US$1. With…
A: The interest rate are very important factor in determining the forward rate and both must go in hand…
Q: Indian rupee forward contracts. The Indian rupee (INR) is currently trading at INR 50 = US$1. With…
A: Spot rate of Indian rupee is INR 50 = US $1 90-day INR yield = 10% per annum. U.S. dollar treasury…
Q: Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S.…
A: Forward premium is a condition in which the forward rate or the expected rate of one currency is…
Q: The Government of Oman issues Treasury Bills in the maturity periods of 28-Days, 91-Days, and…
A: There are various markets in finance like capital, money , equity and forex
Q: Spot rate €1.2562/£; 1 month forward €1.2662/£ Which of the two currencies is trading at forward…
A: Forward contracts are derivative contracts. In these contracts, a specified price is locked in for a…
Q: Today the one-year forward rate for the Swiss franc is SF1393/S. The spot rate is 511521/ The…
A: Interest rate parity is a no-arbitrage opportunity that states that hedged returns are not affected…
Q: In a MNC has peso payables coming due in 90 days, and is certain the the peso will appreciate.…
A: Put option contracts are the contracts which gives the buyer the right to sell an underlying asset.…
Q: The spot rate on the London market is £0.5520/$, while the 90-day forward rate is £0.5589/$. What is…
A: Annualized forward premium = [(Forward rate - spot rate)/spot rate]×(360/90)×100%
Q: On November 1, 2020, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a…
A: The Yuan is selling at discount in forward market <spot rate. The forward contract include a…
Q: Assume that interest rate parity holds and that the 90-day risk-free securities yield is 5% in the…
A: The question is based on the concept of Foreign Exchange.
Q: Public Islamic Bank Bhd has excess fund and decided to invest in Malaysia Government Investment sue…
A: Face Value MYR 20,00,000.00 Issuance Date 07-04-2019 Maturity Date 07-04-2023 Coupon Rate…
Q: Land the forward.rates for the Brazilan Real Spot Rate Fow (Delivery c 2021) December 1, 2020…
A: It is a contract under which a business consents to purchase a specific measure of a foreign…
Q: Refer to the World View to answer two questions. WORLD VIEW Zimbabwe Raises Key Interest Rate to 70%…
A: From the world's view, the world interest rate can be calculated using the following two…
Q: c. As of 29/03/2021 at 06:00 pm, 1 year forward $/TL rate in Reuters quotations is 9.73 $/TL. Spot…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Suppose you work as a broker in an investment company, and there is an expectation that the market…
A: CD are issued at discount to the face value of CD so price of CD is always some value below face…
Q: On 19 April Following are the Spot Rates Spot EUR/USD 1.2000 USD/INR 44.8000 Following…
A: Bullish Market is the market where there is an expectations of rise in the prices of the asset or…
Q: Suppose that a commercial bank’s current quote for transactions involving the United Kingdom pound…
A: A bid is the highest price a buyer will pay for a security and ask is the lowest price a seller will…
Q: If one U.S. dollar buys 1.58 Canadian dollars, how many U.S. dollars can you purchase for one…
A: A rate through which individuals or companies convert their domestic currency with the other…
Q: The Government of Oman issues Treasury Bills in the maturity periods of 28-Days, 91-Days, and…
A: Option Explanation a Capital market is for long term securities b It is for short term…
Q: On 19 April Following are the Spot Rates Spot EUR/USD 1.2000 USD/INR 44.8000 Following…
A: Here, Spot Price of USD/INR is 44.8000 Strike Price of Call Option of USD/INR is 44.8000 Premium…
Q: The standard rate of VAT in Oman IN 2021 will be __________________. A 20% B…
A: VAT (Value added tax) is an indirect tax which is levied on goods and services sold for the value…
Q: The Moroccan currency, dirham, is pegged to the dollar at MAD10.21/$. If the Moroccan monetary…
A: The dirham has revalued.
Q: Joey hedges its foreign currency payable commitment with a forward exchange contract – fair value…
A: On 01.11.2020, Joey company contracts to purchase special order goods from New York company = $1200…
Q: On 15 April 2021, JHB Bank quoted the following spot and swap rates between the rand and the euro…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Assume that the U.S. interest rate is 7 percent and the euro’s interest rate is 4 percent. Assume…
A: US interest rate = 7% Euro's interest rate (e) = 4% Euro's forward rate (f) = 2%
Q: Duck Corporation "forecasted" on December 21, 2020 to sell a machine to a company in Italy. The…
A: A forward contract is a type of derivative instrument which is used to hedge against risk. The…
Q: The real rate is 4 percent and the inflation rate is 5.6 percent. What rate would you expect to…
A: When the money supply increases over the period of time then by adversely affects the demand and…
Q: (c)The discount rate on this week's Government of Ghana 182-day treasury bills is quoted as 19.5521%…
A:
Q: entral Bank of Oman on behalf of the Oman Government raised OMR 13 million by way of treasury bills…
A: The correct answer is a. Treasury Bills can be issued by companies having good credit rating
Q: In March 2019, the exchange rate was 3200 Col/$ In May 2019, the exchange rate was 4000 Col/$ What…
A: Calculation of percentage change for Columbia and US Dollar is shown below: Hence, US Dollar has…
Q: ) In another case are these quotes: Spot rate €1.2562/£; 1 month forward €1.2662/£. Which of the…
A: Forward Premium is the state when the expected future price of the currency is higher than the…
Q: In 2020, inflation rate in UK is 3.3% and in Spain it is 3.5%. In 2021, inflation rate in UK is 6%…
A: The answer states the computation of forward rate.
Q: The figure below is relevant to answer Question 12. Suppose that today is 13 August 2019 and the…
A: Exchange rate predictions are used to hedge the current positions in the currency in order to…
Q: The Government of Oman issues Treasury Bills in the maturity periods of 28-Days, 91-Days, and…
A: Equity market is the market where shares of listed companies are traded.
Q: On 1st January 2019, an Omani importer has to receivé čômmodities foF EUR TU0,00. THIS amouHt SHOuld…
A: The market can be classified as spot, forward, cash on the basis of nature of instruments traded.
Q: You purchase a T-bill (traded on Oct 2, 2020) at a price of 99.8% of face. The T-bill will mature on…
A: Bank Discount yield = Discount / Face value *360 /no. of days until maturity
Q: Answer the question using October 1999 table: How many EUR can you buy for 1USD and other way…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On November 1, 2020, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Calculate the market price of the following treasury bill. issuer: Omani government. issue date: 6…
A: Market price of t-bill=Maturity price-Discount rate×days to maturity365 days
Q: Suppose that today is 13 August 2019 and the current exchange rate is HKD 6.20 per AUD 1.00. The…
A: An investor uses a forward contract in order to lock the price at which transaction will be…
Calculate the market price of the following treasury bill.
issuer: Omani government.
issue date: 6 June 2021.
maturity date: 21 August 2021.
The discount rate is 0.058.
Step by step
Solved in 2 steps with 1 images
- An Austra ian companv has decided to issue a 90-dav bank-accepted bill domestically to raise additionafunding of S18000 to buy equipment. If the bank has agreed to discount the bill at a yield of 8.5% per annum,which of the following values will the face value of the bill be closest to? a.S17913.31 b.S17641.62 O c.S18744.81 d.$18377.26 e.s17630.48 f.s18000.00 g.S18382.50.On 15 April 2021, JHB Bank quoted the following spot and swap rates between the rand and the euro (ZAR/EUR) to a client called MAZDALtd.Rates quoted by JHB Bank on (ZAR/EUR): Bid – OfferSpot (ZAR/EUR) (Spot date: 15 April 2021): 15.7258 – 19.55672-month swap rate (i.e., Forward value date: 15 June 2021): 1290 – 135012-month swap rate (i.e., Forward value date: 15 April 2022): 7055 – 9534Other important informationExpected inflation rate in SA over next 12 months: 4.67%Expected inflation rate in euro area over next 12 months: 1.95%The price of one Apple MacBook computer in euro area: EUR 689The price of one Apple MacBook computer in South Africa: ZAR 22350Euro area 12-month interest rate: 3.50% South African 12-month interest rate: 8.90% 2.1 The exchange rate at which JHB Bank is willing to sell the ZAR spot is ____? 2.2 The exchange rate at which JHB Bank is willing to buy the EUR two months forward is _____? 2.3 The exchange rate at which MAZDA Ltd. will buy the EUR 12 months forward?…(c)The discount rate on this week's Government of Ghana 182-day treasury bills is quoted as 19.5521% If you buy 182-day bills with a face value of GHS10,000, how much would you pay for them? How much would you earn in interest over the holding period? [Express your answer as a percentage] Express the interest you would earn
- Assume that the spot rate for the US Dollar is ZMW24, while the 180-day forward rate for the Zambian Kwacha is ZMW24.4. What is the forward rate premium?9- The Government of Oman issues Treasury Bills in the maturity periods of 28-Days, 91-Days, and 182-Days. To which market will you associate the treasury bills from the below options: a. Capital Market b. Money Market c. Foreign Currency Market d. Equity MarketThe Central bank of Oman issued treasury bills with 180 days maturity and at a discount rate of 6 percent. Calculate the present value or the market price of the treasury bill assuming the face value(FV) to be 100. Select one: a. 96.60 b. None of these c. 97.04 d. 95.40
- Suppose you work as a broker in an investment company, and there is an expectation that the market interest rate will be 0.029. based on this expectation you are required to calculate the market price for the following CD;Issue date: 1 January 2021 Maturity date:10 May 2021. The face value OMR 10000. Interest on CD: 5 percent. Select one: a. 15942.02 b. 15574.10 c. 15677.97 d. All the given choices are not correct e. 15572.50You submit a noncompetitive bid in Dec. 2020 to purchase a 28-day RM1,000 Treasury bill, and you find that you are buying the bond for RM999.88722. What are the: a) discount rate % b) investment rate %?Rates quoted by USB Bank on (ZAR/EUR): Bid – OfferSpot (ZAR/EUR) (Spot date: 15 April 2021): 18.1449 – 18.45692-month swap rate (i.e., Forward value date: 15 June 2021): 1370 – 449512-month swap rate (i.e., Forward value date: 15 April 2022): 7715 – 9555Other important informationExpected inflation rate in SA over next 12 months: 4.25%Expected inflation rate in euro area over next 12 months: 1.15%The price of one Apple MacBook computer in euro area: EUR 796The price of one Apple MacBook computer in South Africa: ZAR 21550Euro area 12-month interest rate: 2.25% South African 12-month interest rate: 7.55% The exchange rate at which USB Bank is willing to sell the ZAR spot is
- Suppose the year 1, year 2 and year 3 forecasts for the rate of inflation in Denmark are 3%, 4% and 5% respectively. Suppose also that the year 1, year 2 and year 3 forecasts for the rate of inflation in France are 11%, 9% and 8% respectively. If the expected spot rate between the Danish Krone (DKK) and the EUR is EUR0.1344/DKK at the end of year 3, what is the current spot rate? a.EUR0.119024/DKK b.EUR0.151762/DKK c.EUR0.111027/DKK d.EUR0.128269/DKK e. Not enough information to answer this question.Suppose the year 1, year 2 and year 3 forecasts for the rate of inflation in Denmark are 3%, 4% and 5% respectively. Suppose also that the year 1, year 2 and year 3 forecasts for the rate of inflation in France are 11%, 9% and 8% respectively. If the expected spot rate between the Danish Krone (DKK) and the EUR is EUR0.1344/DKK at the end of year 3, what is the current spot rate? a. EUR0.119024/DKK b. EUR0.151762/DKK c. EUR0.128269/DKK d. EUR0.111027/DKK e. Not enough information to answer this question.Central Bank of Oman on behalf of the Oman Government raised OMR 13 million by way of treasury bills on 16th September 2020. Which of the following is not true about Treasury Bills? a. Treasury Bills can be issued by companies having good credit rating b. Treasury Bills are short-term borrowing instruments c. Treasury Bill are issued at discount to the face value on maturity d. Treasury Bill have greater liquidity than other bills
