User Account

All Pages

What is the current value of the euro cd principal

Assignment Help Finance Basics
Reference no: EM131633495

Question: Six months ago, Quality bank issued a $100 million, one-year-maturity CD, denominated in British pounds Euro CD). On the same date, $60 million was invested in a £-denominated loan and $40 million in a U.S. Treasury bill. The exchange rate on this date was £1.5382 for $1. If you assume no repayment of principal and if today's exchange rate is £1.1905 for $1:

a. What is the current value of the Euro CD principal in dollars and pounds?

b. What is the current value of the British loan principal in dollars and pounds? What is the current value of the U.S. Treasury bill in dollars and pounds?

c. What is Quality bank's profit/loss from this transaction in dollars and pounds?

Reference no: EM131633495

Questions Cloud

What is the loss or gain to a swiss investor : What is the loss or gain to a Swiss investor who holds this bond for a year?
How do ang and anzaldua define their new concept of identity : How do Ang and Anzaldua define their new concepts of identity? How does the literary work of Achebe and Lahiri illustrate that identity is a negotiation?
Fyre festival in bankruptcy : A judge has put the company that promoted Fyre Festival in bankruptcy following pressure from disgruntled lenders who hope federal court will in time reveal
Explain the ideas that gave rise to pretrial diversion : Explain the ideas that gave rise to pretrial diversion. Discuss at least three main reasons advanced in support of pretrial diversion.
What is the current value of the euro cd principal : If you assume no repayment of principal and if today's exchange rate is £1.1905 for $1: What is the current value of the Euro CD principal in dollars and pounds
Corresponding continuously compounded rate : If the one-year simple interest rate is 3.5%, what is the corresponding continuously compounded rate?
How will the bonds be presented on the balance sheet : The bonds mature in 10 years. How will the bonds be presented on the balance sheet
Accumulated for your retirement : Your account pays you 6.29% compounded annually. How much money have you accumulated for your retirement?
What changes have you notice in your community : What changes have you notice in your community in the past several years - has the structure of the population change, the economy improved.

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