takaful premiums are?

Q: What is market interest rate?

A: The interest rate in which borrowers and lenders borrow and lend money to each other is called…

Q: Explain the law of one price in the perspective of the following: a) Purchasing power parity b)…

A: Law of One Price: It is stated in the law of one price that, in the absence of friction between…

Q: Compare the book value with the market price?

A: Book value is the amount of acquisition cost of asset, less accumulated depreciation as on a…

Q: Define the term internal rate of return?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: Nhat is the exact rate of return?

A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…

Q: Explain The Need for an External Interest Rate?

A: There is a strong need for the external interest rate because it helps in making financial…

Q: How to calculate Present Value Interest Factors?

A: PVIF is known as Present Value Interest Factor. PVIF refers to a factor that is very useful in…

Q: Identify the MARR (or external interest rate)?

A: A minimum acceptable rate of return (MARR) is the all-out advantage that a speculator wants to pick…

Q: What is the difference between spot rates andforward rates? When is the forward rate at a premium to…

A: Spot rates are the rates that prevail in the cash market or the rates that are applicable today.…

Q: What is the basis for the discount rate in a DCF analysis? Describe how this rate mightbe estimated.

A: Basis of discount rate in DCF analysis is to compute the PVF of future Cash Flows expected as it is…

Q: Define the term premium?

A: Premium in finance has several definitions, with the initiative being the overall cost of purchasing…

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: What is the discounted-payback method?

A: Payback period states the number of years that is taken by the project to recover the investment of…

Q: When there is a forward premium, what condition must be true (in CIP or UIP)? Explain how that…

A: CIP maintains in reality. Indeed, CIP refers to how financial institutions that offer advanced…

Q: What is liquidity premium (LP)?

A: Answer: Interest rate theory on liquidity premium is a significant concept in bond investment. It…

Q: hat is the current market view on AUD/USD? (Will it appreciate and which depreciate? and why

A: The exchange rate depends on the interest rate in the market and inflation in the market and goes up…

Q: What is the Fixed Charge Coverage Ratio? • What is the Earnings Yield Ratio?

A:

Q: What discount rate is used in a lessor’s NPV analysis?

A: Weighted average cost of capital is used as discount rate in Lessor's NPV analysis.

Q: What is Inflation Premium?

A: Inflation premium: An inflation premium is the piece of the common interest rate coming about…

Q: What is the net income for both options assuming present worth method?

A: PRESENT WORTH OF BATCH Depreciation = (50,000 - 6000) / 5 = $8800 P{B} = -50,000 - (10,000) (P/A,…

Q: Define the term Discounted-Payback Period?

A: The payback period states the number of years that is taken by the project to recover the investment…

Q: What do you think about the interest rate i for

A: A recession refers to the time period which is affected by a temporary economic decline during which…

Q: Compare the mutually exclusive alternatives based on the rate of return?

A: Mutually exclusive projects are the projects out of which one best project is selected due to lack…

Q: ernal rate of return and the discount rate turn pany's discount rate or internal rate of return unt…

A: To find the correct option as,

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What are the different terms used to refer to the rate of return?

A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…

Q: What are the features of the discounted payback period

A: DPP is the total time taken for the initial amount to equal to be the amount of discounted value of…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: Where does the discount rate from present value came from? How to solve it?

A: In finance, a reduction rate is that the rate of come wont to discount future money flows back to…

Q: What is the present worth of a uniform series payment?

A: The present worth is the value of an asset at present considering an assumed discount rate, which…

Q: How can we identify the MARR (or external interest rate)?

A: The minimum profit expected by an investor from an investment after considering all the risks and…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: The discount rate can also be referred to as the?

A:

Q: Is a cap rate the same as an IRR? Which is generally greater? Why?

A: The capitalization rate or cap rate cant be considered as similar to the IRR or the internal rate of…

Q: Define discounted payback period

A: The payback Period is the time duration taken to reap back the amount invested in the project. The…

Q: What is inflation premium (IP)?

A: Inflation premium is considered to be a very popular concept as this is considered to be a major…

Q: What is the discounted payback period?

A: Discounted payback period is period for which present value of cash flow is equivalent to initial…

Q: Briefly explain Purchasing Power Parity?

A: Purchasing Power Parity (PPP) is a theory of exchange rate determination. Purchasing power parity is…

Q: What's the best ETF to buy? And why?

A: ETFs are the best popular traded option for investors looking for growth in their money with both…

Q: When there is a forward premium, what condition must be true (in CIP or UIP)? Explain how that…

A: CIP maintains in reality. Indeed, CIP refers to how financial institutions that offer advanced…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…

Q: How is NPW used as a Function of Interest Rate?

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: "Fisher effect defines the relationship between nominal rates, real rates, infiation, default…

A: Fischer effect:- It is an important concept of economics that describes the releationship between…

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.