User Account

All Pages

Interest on the australian dollar loan

Assignment Help Finance Basics
Reference no: EM133000569

Biopharma-Australia can borrow fund in Australia with an interest rate of 11.25% to invest 1.54 million Chinese yuan (CNY) and expected return of CNY2.27 million next year. Assume that Biopharma-Australia and Haier-China engage in a parallel loan in which the Haier-China gives Biopharma Australia CNY1.54 million in exchange for a loan in Australian dollar (A$) at the current exchange rate A$0.2023/CNY. These loans will be repaid by both parties at the end of one year. Assume that next year, Biopharma-Australia will pay the Haier-China 14.44% interest on CNY1.54 million and that the Haier-China will pay Biopharma-Australia 7.71% interest on the Australian dollar loan. Also, Biopharma-Australia believes that the CNY will appreciate to A$0.2949/CNY next year. How much the Biopharma-Australia will make a profit or loss in A$ from this parallel loan agreement in one year. (enter the whole number with no sign or symbol)

Reference no: EM133000569

Questions Cloud

What would be sukdeev ear : Sukdeev is looking for a mortgage. He goes to the bank and they tell him that the rate is 4% with quarterly payments.
Develop an evidence-based program and evaluation plan : Critically examine and apply the principles and strategies of community and stakeholder engagement and Develop an evidence-based Program and evaluation plan
What the impairment journal would be : At 30 June 2021 the carrying amount of the cruise ships is $12,400,000 and the recoverable was later found to be $5,000,000, the impairment journal would be
How much would yield the lowest amount : How much would yield the lowest amount? One branch of Galssy Company earned an income of P560,000 before bonus and taxes for 2020.
Interest on the australian dollar loan : Biopharma-Australia can borrow fund in Australia with an interest rate of 11.25% to invest 1.54 million Chinese yuan (CNY) and expected return of CNY2.27 millio
What is the amount of the annual scholarship : Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 4.29% p.a. compounded
Estimate the apr : Estimate the APR. Round to the nearest tenth of a percent. Use the Approximate Annual Percentage a rate Formula.
What would be the total annual leave expense for cruiselines : 4 weeks to be payable when employees take annual leave. For the year ended 30 June 2021, what would be the total annual leave expense for CruiseLines?
What annual rate of return per year : 1. What annual rate of return per year allows you to triple your money in 15 years? Assume annual compounding.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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