Table of gold prices and commodity swap rates

Assignment Help Finance Basics
Reference no: EM133060154

The following table presents the spot prices of the risk-free interest rate market. The spot price of gold is $ 425 per ounce. If the gold storage cost is 0.15% per year and the convenience yield is a fixed 1%.

Complete the following table of gold prices and commodity swap rates.

Maturity(t)

 Spot Rate

Foward Price

Swap Rate

1

0.03

 

 

2

0.035

 

 

3

0.04

 

 

4

0.043

 

 

5

0.045

 

 

Reference no: EM133060154

Questions Cloud

Domestic or international affairs : Identify a problem in domestic or international affairs, discuss its complexity, and propose policy recommendations.
Evaluate different investment styles and equity trading : evaluate different investment styles and equity trading
Domestic or international affairs : Identify a problem in domestic or international affairs, discuss its complexity, and propose policy recommendations.
Find the net payment on an equity swap : Find the net payment on an equity swap in which party A pays the return on a stock index and party B pays a fixed rate of 6 percent.
Table of gold prices and commodity swap rates : The following table presents the spot prices of the risk-free interest rate market. The spot price of gold is $ 425 per ounce. If the gold storage cost is 0.15%
What the liability balance to be reported : During 2021, the company sold 800 DVD players and 500 service contracts for cash. What the liability balance to be reported in the 2021 statement of financial
What transaction should you do : You hold a stock portfolio worth $20 million with a beta of 1.63. You would like to lower the beta to 0.95 using S&P 500 futures, which have a price of 475.8 an
Find the forward rate : The current exchange rate is $1.35/Euro. Find the forward rate if current US risk free rate is 2 percent, the Euro-zone interest rate is 7 percent, and the forw
After-tax weighted average cost of capital : The Wong Biotech Corporation wants to determine its weighted average cost of capital. Its target capital structure weights are 50 percent long-term debt and 50

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the total value of the firm right

The company has the following market values of debt and equity: Market value of debt: $50 Market value of equity: $60 Therefore, the total market value.

  Identify common political factors for an mnc

In 400 to 500 word Microsoft Word document, respond to the following: 1)  Identify common political factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC.

  Determine which of the following factors is not usually

question 1. a standard cost is a predetermined amount e.g. cost thatshould be incurred under relatively efficient

  Find the purchase price of the issue on september

The directors of a company authorized the issuance of Ksh30,000,000/= of serial bonds on September, 1993

  How many total dollars of dividends should joe expect

ABC Incorporated just paid a dividend of $1.59 on its common stock. Joe forecasts that the dividends for ABC will grow at a constant rate of 10.3%.

  Compute the cost of capital for the individual components

Compute the cost of capital for the individual components in the capital structure. (Use the rounded whole percent computed in part a for g.

  Bonds are long-term debt contracts

Bonds are long-term debt contracts under which a borrower agrees to make a series of interest and principal payments on specific dates to the lender.

  Determine the number of years required for an investment

An investment of $1 will double in 20 years at a force of interest d (delta). Determine the number of years required for an investment of $1 to triple at a nominal rate of interest, convertible 3 times per year, and which is numerically equivalent..

  Explain the effect of supply chains on financial decisions

Describe factors that contribute to foreign exchange risk and methods to mitigate them.

  Determine the total amount he will pay in interest

Determine the total amount he will pay in interest over the life of the loan.

  How to reduce the country unemployment rate

The Brazilian government announces that it will print billions of new reals and inject them into the economy in an effort to reduce the country's 40 percent.

  Monitor during the budget cycle

List 6 Key Performance Indicators you could monitor during the budget cycle, explain how they are calculated and why you would choose to monitor this KPI?

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!

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