For the below questions use these rates that your bank has quoted you: EUR/USD:        1.0175 – 1.0180 GBP/USD:        1.2065 – 1.2070 USD/CAD:        1.2930 – 1.2935 USD/JPY:          134.85 – 134.90 AUD/USD:        .6905 - .6910   Calculate the following crosses:   EUR/GBP   EUR/JPY   AUD/JPY   GBP/CAD   GBP/JPY   CAD/JPY

Q: Your rich aunt has promised to give your $5200 in 4 years.  How much should you be willing to…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: Why would a company typically choose to source external financing by issuing bonds rather than…

A: Bonds are debt instruments that are used by institutions to raise capital. The face value and the…

Q: All rates in this question use semi-annual compounding. You observe a two year spot rate of 6.00%,…

A: Pure Expectation theory of interest rate states that the return of holding two year bond is the same…

Q: Use the ‘Liquidity Premium Theory’ to explain the shape of the yield curve.

A: Liquidity Premium Theory states that investors will require a higher rate of return(interest rate or…

Q: Risk aversion preference OA. True OB. False refers to an investor's for risky assets.

A: Risk aversion refers to the practice where an investor opts for investment with less volatility even…

Q: company borrowed P45,200 from a savings and loan association that charges 14% converted quarterly.…

A: Loan are paid by the equal periodic payments that carry the payment for interest payment and also…

Q: Suppose the discount rate is 10%. You bought a 10-year, 8% coupon bond with 7 years after it is…

A: Semiannual coupon amount (C) = $40 (i.e. $1000 * 0.08 / 2) Maturity value (MV) = $1000 (Equal to par…

Q: PROBLEM 6 10 K Reporting CARNIVAL CRUISE LINES          refer to:  Exhibit 13 Selected Financial…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: If you believe the stock market may crash and would like to reduce your portfolio risk, what Beta…

A: Beta is a measure a systematic risk.  Systematic risk is the risk which cannot be eliminated by…

Q: A cheese factory wants to protect their purchase price of milk so they hedge in milk futures at a…

A: Basis is the difference between the commodity cash price and futures price.Basis = Cash - Futures…

Q: You purchased some shares in Flying Dutchman.com on 12 August 2022, at price $67.41. On 09 November…

A: Given,  The purchase price is $67.41 The dividends paid are $2.85 and $1.08.

Q: Your bank is offering a term deposit that will earn investors an EAR of 12.00%. Your manager asks…

A: EAR (Effective Annual Rate) = (1 + (APR / n))n - 1 Where  n = Number of compounding in a year

Q: ohn has just borrowed an amount of K5,000 to pay his school fees. The loan is to be repaid in equal…

A: Loans are paid by the annual payment that carry the payment of loan and payment of interest also but…

Q: Can you estimate the annual rate of return to grow $5,000 to $20 million in 51 years?  Show cash…

A: The following information is provided.FV = 20,000,000PV = 5000n = 51 years Annual rate of return can…

Q: ou sell short 18 shares of Wells Fargo &Co that are currently selling at $54 per share. You post the…

A: A short seller borrows securities from a broker in order to sell them now. He provides an initial…

Q: The following data are taken from a United States Department of Agriculture (USDA) report for the…

A: Total Supply = Beginning Stocks + Production + Imports Ending Stock = Total Supply - Use It is also…

Q: Compare and contrast the Accountant and Economist models' perspectives on Cost Volume Profit…

A: Cost volume profit analysis is referred as the method of analysis, which is used for finding out the…

Q: Assume that we are at the natural rate of GDP, meaning we do not have a recession or an expansion,…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Debt is riskier than equity, and therefore only higher returns on debt are required in order to…

A: Company requires funding for their investment which can be obtained from broadly two sources.…

Q: You're evaluating various investment opportunities and you have the following information about five…

A: The Sharpe ratio is used to measure the return of a portfolio that has been adjusted for risk. An…

Q: . Find the component costs of debt, preferred stock, and common stock. b. What is the WACC?

A: WACC: It refers to the rate used to discount the projects or investments' cash flows in capital…

Q: What is the present value of $452,000 to be received in 6 years from today.  Assume a per annum…

A: Compound interest is one of the form of interest in which interest is charged on both principal as…

Q: Suppose in 1978 there is a surprise recession expected to last until 1979 and in response the Bank…

A: Recession is referred as the business cycle, which has the contraction at the time of decline in an…

Q: A cheese factory wants to protect their purchase price of milk so they hedge in milk futures at a…

A: Basis in futures is the difference between the futures price and the spot price.It is an important…

Q: odaFizz paid a dividend of $2 per share last year; its dividend has been growing at a rate of 2% per…

A: The dividend is paid to equity shareholders as a share in the profit. The dividends are the amount…

Q: Malone Corp. is considering the purchase of a new piece of equipment. The cost savings from the…

A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…

Q: Issuer Rating Yield Spread (bps) Treasury Benchmark Corporation A Triple A 7.87 50 10 Corporation B…

A: Solution:- Credit risk means the risk of default made by the issuer.

Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…

A: Bond 1: Annual coupon rate = 8% Semi-annual rate = 8%/2 = 4% Dirty price “P” = $99.49 Let Face Value…

Q: Case: Two months ago, Lisa was honorably discharged from the Air Force where she spent four years…

A: Loans and mortgages are given on the basis of capacity to pay back the loan that is based on monthly…

Q: You deposit $10,000 in a retirement account today at 5.8% interest with annual compounding. How much…

A: Future value = Present Value×[1+Periodic interest rate]^n Where,  n = number of periods = 28…

Q: Please I need help determining the following: 1.7 Return on Equity (ROE)     1.8 Return on…

A: Return on Equity: It represents the company's measure of profitability and is estimated by the net…

Q: College Station Bandwagon is the sole provider of the internet in the College Station area. T…

A: Loans are paid by installments these installment carry the payment for interest and also payment of…

Q: Given the following income statement data, calculate net income: sales=$2500, cost of goods…

A: To calculate the net income we will use the below formula   Net income = [Sales-Cost of goods…

Q: In how many months will P10,000 earn a compound interest of P2,000 if money is worth 12% compounded…

A: To calculate the number of months we will use the below formula   CI = [P*(1+r)n]-P Where CI -…

Q: How long will it take for P 1,000.00 to amount to P 1,346.00 if invested at 6 compounded quarterly?

A: Interest is the amount charged or received by investing or borrowing some amount. It can be simple…

Q: To attend school, Arianna deposits $160 at the end of every month for three and one-half years. What…

A: To calculate the accumulated amount we will use the below formula   Accumulated amount =…

Q: Today, a firm has a stock price of $14.26 and an EPS of $1.15. Its close competitor has an EPS of…

A: The method of comparables is used to find the equity value of a company by equating its ratios to…

Q: Compare the benefits and drawbacks to long-term vs. short-term leases from EITHER the point of view…

A: Lease refers to the contract between the parties in which one party agrees for renting an asset…

Q: Following is a table for the present value of an annuity of $1 at compound interest: Year 6%…

A: Given: Future value = $57,000 Interest rate = 6% Years = 3

Q: The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource…

A: Solution:- Present worth means the net present value. It means the net present value of benefits…

Q: Hi there, a Bartleby tutor just helped me answer this question but it was monthly compounding. I now…

A: The Future Value: The value of an investment made at present at some time in the future or at the…

Q: The internal rate of return for Company A is close to

A: IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a…

Q: What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500…

A: Given,  The future amount is P84,500 Rate is 20% Term is 3 years and 9 months

Q: What is the current stock price?

A: Information Provided: Dividend Paid = $1.50 Required rate of return = 8.90% Constant growth rate =…

Q: f you issue a thrifty year fixed rate mortgage to finance the purchase of a home you are locked into…

A: Mortgage It is a type of loan where borrower pays a series of fixed periodic payment. This periodic…

Q: Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics,…

A: Par Value is $1,000 Coupon rate is 8% Compounding frequency is Semi-annual Current Selling price is…

Q: Amazon's Housing Equity Fund is supporting the construction of housing for low to moderate-income…

A: As per press reports the Amazon Housing Equity Fund is mainly focused in Washington State’s Puget…

Q: You are looking at installing solar cells on your roof so you get power for free. You got an…

A: Actual ROR "rate of Return" The gain or loss relative to the cost of an initial investment, usually…

Q: Investment required in equipment Expected life of the project Salvage value of equipment Annual…

A: The net cash flows: The net cash flows are considered while evaluating a project.  The net cash…

Q: SodaFizz has debt outstanding that has a market value of $3 million. The company’s stock has a book…

A: Market value of debt = $3 million Market value of equity = $6 million Total capital = $9 million…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.