Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question :
a) What are the rationales for interest and currency swaps?
b) A finance house and a bank each have a $1billion balance sheet. The finance house has lent out at a fixed rate of 22% pa for five years. The loans are interest only with a bullet repayment of the capital on maturity. It has financed them by the issue of certificates of deposit, paying the T-Bill rate plus 60 basis points.
The bank has access to savings deposits at a fixed rate of 4%. It has lent out these funds on a floating rate basis at the T-Bill rate plus 220 basis points.
All floating rates are reset each quarter and fixed rate payments are made at the same time. The 3-month T-Bill rate is initially 6%.
a) What are the spreads on which the finance house and the bank operate?
b) What risks do the bank face and finance house?
c) Prepare a swap that will immunise both spreads. Describe how it works and why it might be preferred to a policy of matching.
Question: (a) You have just been recruited as risk analyst at the Air Mauritius Limited. Your risk manager is trapped between diverging expectations. He is not sure whether oil
Profit for the year R3 million R4 million Gross dividends R1.5 million R2 million Market value per ordinary share R4 R1.60 Number of ordinary shares 5
A minimum level of sales-oriented activities that must be meet up by a salesperson in the given time period. An activity quota may need a salesperson to create a certain number of
Kristina started setting aside funds three years ago to save for a down payment on a house. She has saved $900 each quarter and earned an average rate of return of 4.8 percent. How
Question: a) You have just been appointed a portfolio manager of Malou investment. An investor has two assets available from which to form his desired portfolio. Asset X has a
Question: (a) Distinguish, using financial assets as examples, between securities quoted at par and securities quoted on a discount. (b) Calculate the value of a £50,000 Tre
Question: a) Provide an analytical derivation of the Capital Asset Pricing Model (CAPM) and supplement your analysis with diagrammatic illustrations where appropriate. b) T
Question: a) Explain what you understand by good corporate governance framework and its application to the local context. b) ‘The Borrower Protection Act 2007 was en
mystore retail has about $200 000 in credit sales each month.mystore factors all these invoices at a 5% fee.what is the effective annual (%) cost of this action?
Question: (a) Give a definition of electronic banking and electronic money. (b) Outline the main differences between smart cards, credit cards and debit cards. (c) Giv
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd