Assess the impact of the COVID-19 pandemic on the bond market in the USA.

Use a real-world example such as the use of credit default swap before the GFC, or the use of total return swaps by Archegos whose failure was unfolded in March 2021, to illustrate how financial derivatives can be deemed as a mass-destructive weapon. Detailed Explaination and Example are needed.

Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows: Base price level Current U.S. price level Current South African price level Base rand spot exchange rate Current rand spot exchange rate Expected annual U.S. inflation Expected annual South African inflation Expected U.S. one-year interest rate Expected South African one-year interest rate 100 105 111 Answer is complete but not entirely correct. $ 0.1684 X $0.178 $0.161 Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively): ZAR spot rate under PPP 7% 5% 10% 8% a. The current ZAR spot rate in USD that would have been forecast by PPP. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

What has been the role of IMF loans in international affairs addresing financial crisis? Why are they so controversial?

How will zero coupon bond benefit a country

The so-called “dual monetary policy mandate” of the Federal Reserve calls for setting conditions conducive to: (a) best stock market performance and lowest interest rates;  (b) maximum sustainable real economic growth and highest stock market performance; (c) maximum employment and price stability; (d) maximum money supply growth and a safe and sound banking system.

What are potential opportunities in the indian bond market today?

Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows: Base price level Current U.S. price level Current South African price level Base rand spot exchange rate Current rand spot exchange rate Expected annual U.S. inflation Expected annual South African inflation. Expected U.S. one-year interest rate Expected South African one-year interest rate ZAR spot rate under PPP 100 105 111 $0.190 $0.173 Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively): a. The current ZAR spot rate in USD that would have been forecast by PPP. (Do not round intermediate calculations. Round your answer to 4 decimal places.) Expected ZAR spot rate 10% 8% 138 11% b. Using the IFE, the expected ZAR spot rate in USD one year from now. (Do not round intermediate calculations. Round…

if we see an increase in default rates, what may that mean for the junk bond market and for companies that want/need to sell more junk bonds?

During crises like the COVID-19 crisis, major currencies such as U.S. Dollar and Euro should appreciate against currencies associated with developing countries. Do you agree with this statement? Discuss. Your answer should be linked to different concepts (e.g., PPP, IRP, IFE, and currency hedging)