User Account

All Pages

How do quote the currency rate

Assignment Help Accounting Basics
Reference no: EM132577106

Given the following market rates:

                                      Bid rate                   Offer rate

USD/MYR                        4.0820                     4.0850

USD/AUD                        1.4114                     1.4120

Question (i) If you are a bank and a Malaysian importer asks for an exchange rate to pay his purchase from Australia. How do you quote the currency rate? Calculate your quotation using the chain rule approach.

Question (ii) If you are a bank and a Malaysian exporter who wish to convert his export proceeds in in AUD to MYR? Calculate your quotation using the cross rate approach.

Reference no: EM132577106

Questions Cloud

What is the value of the share required rate of return : Should you buy this share if its current market price is $34.41? Explain. What is the value of the share given your required rate of return?
What is the current price of the share : Pay its first dividend of $2.45 a year from now. If your required rate of return on such shares is 22 per cent, what is the current price of the share?
Department of children and families in texas : You are a social worker for the Department of Children and Families in Texas, and you have been asked to present information about a public assistance program
Value of x that makes the two cash flows equivalent : Consider the following two cash flows: CF1: 100 at t=0, 200 at t=2, and 300 at t=3 CF2: X at t=1, X at t=2, and 2X at t=4
How do quote the currency rate : If you are a bank and a Malaysian importer asks for an exchange rate to pay his purchase from Australia. How do you quote the currency rate?
Competitive value at the time of sale : At that time the interest rate is 3%. How much is the bond's approximate (within $1000) competitive value at the time of sale?
Is family an outdated institution, out of place in society : Write an essay "Is the family an outdated institution, out of place in modern society perpetuating inequality and irrational ideas
What is estimate of the stock current price : A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company's dividend will grow at a rate
Which items are significant and direct concerns : Identify which two (2) items are significant and direct concerns for both the external auditor and the head of internal audit. Justify your answer.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd