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- A customer is offered an investment where interest is calculated according to the force of interest,t {0.02t 0 ≤ t ≤ 3, 0.045 t > 3If the customer invest GH¢1000 now, what rate of interest, compounded quarterly is earned over the first 4 year period.You have account receivables: ₤5 m in one year. o InterestUS: 6.10% per annum & InterestUK: 9% per annum o Spot exchange rate: $1.50/£ & Forward exchange rate: $1.46/£ (1-year maturity) o Put option strike price: $1.46/£ & Put option premium: $0.02/£ How much will you receive in $ if you use the money market hedge?Mr. Sami contacted his FOREX trader and was informed with the following: the spot rate is USD 0.6545/EUR. It is expected that USD may depreciate by 5% after two months. What will be new exchange rate after depreciation? O a. EUR/USD= 0.7872 O b. 1 EUR= 0.6872 USD OC USD/EUR= 0.7582 O d. EUR O.6872/USD
- Your company expects to pay GBP 1,500,000 in 180 days. The 180 day forward rate for GBP is $1.80 and the current spot rate is $1.76. If you use a forward hedge, estimate the cost of hedging the payable if, 90 days later, the spot rate for GBP turns out to be $1.82 O $30,000 O O $90,000 O DSuppose you are offered $7,100 today but must make the following payments: 1 2 Cash Flows ($) O $7,100 1-3,800 2-2,500 3 -1,600 4 -1,400 Year 4 6. 7 9. 10 11 What is the IRR of this offer? (Do not round intermediate calculations. Enter your ans 12 a. 13 14 15 16 17 b. If the appropriate discount rate is 10 percent, should you accept this offer? 18 19 multiple choice 1 20 21 Reject Ассept 22 23 24 25 C. If the appropriate discount rate is 19 percent, should you accept this offer? 26 27 multiple choice 2 28 29 Аcсept Reject 30 31 32 33 What is the NPV of the offer if the appropriate discount rate is 10 percent? (A negative ar What is the NPV of the offer if the appropriate discount rate is 19 percent? (A negative ar 34 d-1. 35 d-2. 36If you are expecting to get OMR 66634 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: a. 62333.02 b. 51019.88 c. 23696.30 d. 51454.83 e. All the given choices are not correct The commodities or assets that are traded in financial market are called Select one: a. Financial Service b. Financial System c. None of the options d. Financial Institution e. Financial Instrument
- What is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%? Hint: when you see the word “due”, it means that the first payment happens right away (rather than at the end of the period) so you must adjust the formula, in Excel make type=1: =PV(Rate, nper, pmt, fv, type=1)A) You have the following information about prices today, month=0.2-month t-bill, interest rate 0.026-month t-bill, interest rate 0.025What will the forward rate between 2 month and 6 month be??Assume the following: Spot USDBRL = 5.0500 1YR USD Money Market Rates = 1.50% 1YR BRL Money Market Rates = 9.00% What is the 1YR USDBRL forward rate? (Recall that Money Market Rates are quoted as annualized rates)
- = Google Translate DETECT LANGUAGE ENGLISH ARABIC SPANISH If you are expecting to get OMR 45847 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: a. All the given choices are not correct b. 42887.75 c. 35403.09 d. 35103.83 e. 16304.05 iidha k sanawa wayutim P Type here to search DELL Esc F1 F2 E3 F4 E5 F6 F7 F8 @ %23 %24 3r 4.We have purchased a security with the following payment schedule: Year 1 2 3 Payment $100 S150 S400 If the present value of this investment is $580.59, what is the rate of return (or interest rate) ?What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ Cash Flows Annuity Gradient Future 1 $2,000 2 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $14,000 IN 3 st 4 5 6 7. 8 9 10