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. Equity Market Money Market Foreign Currency Market Capital Market
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- 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 MarketA graphical plot of interest rates on government debt securities (Treasury Bills) of varying maturities can have one of three shapes; increasing, decreasing, or flat. The data below show the interest rates on the government of Ghana debt securities (Treasury Bills) on two separate dates; 31st January 2019 and 4th May 2020.31 January 2019 4th May 202091 Day T’Bill 14.65% 14.12%182 Day T’Bill 15.10% 15.31%364 Day T’Bill 17.38% 16.92%Required: ii) On both dates, the yield curve appears to be upward sloping. What reasons would you assign for these upward sloping shapes of the yield curve in Ghana on these separate days? Your explanation should be practical and as detailed as possible but not exceeding 800 words.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. Select one: a. 98.79% b. All the given choices are not correct c. 26.10% d. 99.98% e. 101.69%
- Assume that 90-day U.S. securities have a 4.5% annualized interestrate whereas 90-day Swiss securities have a 5% annualized interestrate. In the spot market, 1 U.S. dollar can be exchanged for 1.2Swiss francs. If interest rate parity holds, what is the 90-dayforward rate exchange between U.S. dollars and Swiss francs?(0.8323 $ per SFr or 1.2015 SFr per $)You are a senior financial analyst and have been asked to analyse recent developments in the Euro era and the U.S markets and advise the top management on the economic conditions in both markets. You have collected data on the euro area yields of the central government bonds and the U.S. treasury bond yields. For this purpose, you have downloaded the following data from the European Central Bank and the U.S Federal Reserve Bank on 24th September 2020 (Mo = month, Yr = Year): 24/09/2020 Time to Maturity Euro area Central Government Bond Yield Rates U.S. Treasury Bond Yield Rates 1 Mo - 0.08% 3 Mo -0.60% 0.10% 6 Mo -0.62% 0.11% 1 Yr -0.66% 0.12% 2 Yr -0.71% 0.14% 3 Yr -0.74% 0.16% 4 Yr -0.74% - 5 Yr -0.72% 0.27% 7 Yr -0.63% 0.46% 10 Yr -0.49% 0.67% 20 Yr -0.17% 1.19% 30 Yr -0.05% 1.40% Considering both yield rates on 24th September 2020, depict the yield curves charts and…The following are the prices in the foreign exchange market between the U.S. dollar and another local currency (LC). Spot $0.03112/LC 3-month forward $0.03117/LC 6-month forward $0.03118/LC What was the approximate discount or premium on a three-month forward for LC? A. 0.643% premium B. 0.013% premium C. 0.013% discount D. 0.643% discount
- A graphical plot of interest rates on government debt securities (Treasury Bills) of varying maturities can have one ofthree shapes; increasing, decreasing, or flat. The data below show the interest rates on the government of Ghana debtsecurities (Treasury Bills) on two separate dates; 31st January 2019 and 4th May 2020. 31 January 2019 4th May 202091 Day T’Bill 14.65% 14.12%182 Day T’Bill 15.10% 15.31%364 Day T’Bill 17.38% 16.92%Required:i) Graph separate yield curves for the two dates. ii) On both dates, the yield curve appears to be upward sloping. What reasons would you assign for these upwardsloping shapes of the yield curve in Ghana on these separate days?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?…The results of Tender 1065 herd on 2nd May 2008 for Government of Ghana Securities show the rates for 91 Day and 182 Day Treasury Bills as follows: Securities Range of Bid Rates (% P.A) Bid Rate Allotted in Full (% P.A) Discount Rates Interest Rates 91 Day Bill 10.79 - 13.00 ? - ? 182 Day Bill 11.00 - 12.70 10.79 - 12.80 ? - ? 1 Year Note 12.00 - 14.00 11.00 - 12.70 12.00 - 14.00 2 Year Fixed Rate Note 13.00 - 14.00 13.00 - 14.00 3 Year Fixed Rate Note 14.00 - 16.50 14.00 - 16.50 Using the Discount Rates provided for the 91 Day Bill and 182 Day Bill, calculate their Interest Equivalent Rates indicated in the table with Question Marks (?).NOTE: DO NOT DRAW THE TABLE
- Required:a. Calculate the dollar proceeds from the FI’s loan portfolio at the end of the year, the return on the FI’s loan portfolio, and the net return for the FI if the pound spot foreign exchange rate falls to $1.20/£1 and the lira spot foreign exchange rate falls to $0.156/TL1 over the year.b. Calculate the dollar proceeds from the FI’s loan portfolio at the end of the year, the return on the FI’s loan portfolio, and the net return for the FI if the pound spot foreign exchange rate rises to $1.40/£1 and the lira spot foreign exchange rate rises to $0.17/TL1 over the year.c. Suppose that the FI funds the $250 million U.S. loans with $250 million one-year U.S. CD at a rate of 4 percent; funds $150 equivalent British loans with $150 million equivalent one-year pound CDs at a rate of 5 percent; funds $100 million equivalent Turkish loans with $100 million equivalent one-year Turkish lira CDs at a rate of 6 percent. Assume no other changes. What will the FI’s balance sheet look like…The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Work out the time periods to maturity, the periodic coupons and the periodic yields for each of the three bonds.The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to maturity for three UK government bonds at the close of business on 7th January 2018. Gilts Prices Close of Business 7th January 2018 Maturity Date Coupon Rate Coupon Payment Dates Yield to Maturity 07/04/2022 3.75% 7th April, 7th October 0.784735% 20/08/2027 1.70% 20th February, 20th August 1.394042% 07/06/2035 4.00% 7th June, 7th December 1.868424% The coupon rates are quoted as annual rates. But UK government bonds divide the annual coupon into two equal instalments payable every six months. Calculate the accrued interest and dirty prices for each bond at the close of business on 7th January 2018.
