y this case and answer question asked below: Spot USD / JPY 116.00 3Months DOLLAR Deposit Rate 4.50% p.a. 6 Months DOLLAR Deposit Rate 5.00% p.a. 3 Months YEN Deposit Rate 0.25% p.a. 6 Months YEN Deposit Rate 0.52% p.a. FRA Rate for Yen Nil What should be 3 month USD FRA Rate 3 months Forward? a. 4.75% b. 5.44% c. 9.5% d.
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Study this case and answer question asked below:
Spot USD / JPY 116.00
3Months DOLLAR Deposit Rate 4.50% p.a.
6 Months DOLLAR Deposit Rate 5.00% p.a.
3 Months YEN Deposit Rate 0.25% p.a.
6 Months YEN Deposit Rate 0.52% p.a.
FRA Rate for Yen Nil
What should be 3 month USD FRA Rate 3 months Forward?
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- The following market data relate to USD and Yen rates:Spot USD/YEN 116.003 months dollar deposit rate 4.5%6 months dollar deposit rate 5%3 months yen deposit rate 0.25%6 months yen deposit rate 0.25%FRA rate for yen is nil a.What is a forward rate agreement? B .What would be the 6 month USD/Yen forward rate?C .What should be the 3 month USD FRA rate 3 months forward? D .The 6 and 12 month USD libors are 5% and 6.5% respectively. What should your bank do if another bank is quoting 6/12 USD FRA at 6.5 -6.75%?Study this case and answer question asked below: Spot USD / JPY 116.00 3 Months DOLLAR Deposit Rate 4.50% p.a. 6 Months DOLLAR Deposit Rate 5.00% p.a. 3 Months YEN Deposit Rate 0.25% p.a. 6 Months YEN Deposit Rate 0.52% p.a. FRA Rate for Yen Nil A forward rate agreement (FRA) is a. an equal monthly instalment payment deal for the purchase of an asset b. an agreement which locks in an interest rate for a future borrowing or lending. c. an agreement between two parties to exchange two currencies at a specified exchange rate d. a lease agreement with a fixed rentalRequired: Assume the time from acceptance to maturity on a $2,280,000 banker’s acceptance is 90 days. Further assume that the importing bank’s acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer’s bank. Note: Do not round intermediate calculations.
- A firm sells its accounts receivables to a factor at a 3.5% discount. The average collection period is 3 month. a. What is the effective annual interest rate on this arrangement? (Round your answer to 2 decimal places.) b. What is the implicit effective annual interest rate if the average collection period is 5 months? (Round your answer to 2 decimal places.)CALCULATE THE FORWARD PER ANUM premium OR DISCOUNT. The pound sterling is quoted against the dollar at Spot $1.8000; 3 months forward $ 1.78. My calculation is (Spot-Foward)/Spot (1.78-1.8)/1.78 =-0.011235955*(12/3)= - 0.0449. It is a discount Can you check and advise me, please ?A bank has iss6a six month 1 million negotiated CD with a 0.72 percent annual interest rate. Thus at maturity (182 day) the CD holder will receive (check photo) in six months in exchange for $1 million deposited in the bank today. Immediately after the CD is issued, the secondary market price on the $ 1 million CD falls to $999,651. What is the secondary market yield on the $ 1 million face value of the CD?
- Study this case and answer question asked below: You have the following quotes from Bank A & Bank B Bank A: Bank B SPOT USD/CHF 1.4650/55 USD/CHF 1.4653/60 3-months 5/10 6-months 10/15 Cash/Spot 1/2 SPOT GBP/USD 1.7645/60 GBD/USD 1.7640/50 3-months 25/20 6-months 35/25 If you want to buy 1 million GBP Spot against CHF you have to pay Minimum Amount you have to pay is a. CHF 2.5866 Million b. CHF 2.5881 Million c. CHF 2.5875 Million d. CHF 2.5863 MillionPlease have a look. 4th currency on the table is RMB(Chinese yuan) Closing Mid-point. 1 USD to 6.4628 RMB (Chinese yuan) Bid/Offer Spread 1 USD to 549-680 RMB( Chinese yuan) One Month Rate. 1 USD - 6.4658 RMB (Chinese yuan)Items EUR/USD USD/MYR USD/SGD SPOT (28 October 2018) 1.1017/18 4.2200/699 1.3917/87 1 MONTH 437/492 74/119 106/138 2 MONTH 103/106 152/202 225/285 3 MONTH -187/+187 278/228 36/42 Table 1: quoted by banks as at 28 October 2018. Based on the above rates, calculate the following (assume no margins or charges are imposed and all exchange controls/regulations are complied with): Quoting bank sells USD/MYR at value spot Quoting bank buys SGD/MYR fixed 3 month delivery Exporter sells USD/MYR option spot to 3 month Importer buys EUR/SGD 1 month to 2 month delivery
- HK Company borrowed Pesos (P) 20,000 as a loan from the United Bank on Jan 1, 2019, with an annual interest rate of 10%, payable every June 30 and Dec 31. HK Company reports quarterly, with a Dec 31 year-end, and it reports in has a functional currency in USD. Exchange rate: 1peso = usd Jan 1, 2019 $10 usd average quarter 1 2019 $10.50 usd march 31, 2019 $11 usd average quarter 2 2019 $10.30 usd june 30, 2019 $10.50 usd Prepare all the journal entries relating to the loan for Jan 1 to June 30, 2019 (Q1 & Q2) for HK Company including the June 30 interest payment.Account Type Opening Deposit Rate(APR) APY Checking – Variable Rate $0 0.25% 0.25% Money Market – Variable Rate $250.00 1.00% 1.01% Summer Cash - Variable Rate $0 0.99% 1.00% Holiday Cash – Variable Rate $0 0.75% 0.75% 6 Months – Fixed Rate $250.00 1.00% 1.00% 12 Months – Fixed Rate $250.00 1.00% 1.00% 18 Months – Fixed Rate $250.00 1.00% 1.00% 24 Months – Fixed Rate $250.00 1.00% 1.00% 30 Months – Fixed Rate $250.00 1.00% 1.00% 36 Months – Fixed Rate $250.00 1.25% 1.25% 48 Months – Fixed Rate $250.00 1.50% 1.50% 60 Months – Fixed Rate $250.00 1.50% 1.50% Use the table above: For the “Summer Cash Variable Rate” and “Money Market Variable Rate” check the APY. Do both of these appear t be printed correctly? a) Summer Cash - Variable Rate: APY = % (round to 2-decimal point in percent) b) Money Market - Variable Rate: APY = % (round to…Give typing answer with explanation and conclusion You purchase a 188-day, $1000 U.S. Treasury bill at 0.36% discount. On the date of maturity, you will receive $1000. What is the actual rate of interest of the Treasury bill? Express the rate as a percent rounded to four decimal places.