the treasurer finds acceptabl(e) The treasurer is of the view that interest rate will rise before the company will issue the debt‚ hence will increase the cost of debt. So to hedge the interest rate risk the treasurer decided to hedge the risk using September Eurodollar futures contract. September 90-day Eurodollar futures contracts are currently trading at 96.25. You are required to a. Explain how treasurer can hedge the risk through Eurodollar futures contract? How many futures contracts are
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Major Determinants of Interest Rates Inflation Inflation is a factor that decisively affects the nature or outcome of interest rates. “Inflation is an increase in prices of goods and services over time”(Financial Institutions‚ Instruments and Markets‚ 2012). Inflation is the natural byproduct of a robust‚ growing economy. No inflation‚ or deflation (the lowering of prices)‚ is actually a much worse economic indicator. Also‚ in a healthy economy‚ wages rise at the same rate as prices. A standard
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Daniel Pinga AEM 4290 General Motors‚ JPY-USD Exposure Executive Summary General Motors Corporation‚ the world’s largest automaker‚ has an extensive global outreach‚ which places the firm in competition with automakers worldwide‚ and subjects itself to significant exchange rate exposure. In particular‚ despite most of its revenues and production being derived from North America‚ depreciating yen rates pose problems for the firm indirectly through economic exposure. While GM possesses ‘passive’
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automobile industries. The following information gives an insight about it. In the present context the companies operate on the principle of natural selection –“Survival Of The Fittest”. Only those companies will succeed which at best match to the current environmental imperatives – those who can deliver what people are ready to manufacturers make. Organizations gain market leadership by understanding consumer needs and finding solutions that delight consumers. If customer value and satisfaction are
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Limitations…………………………………………………………….3 Methodologies……………………………………………………………………...3 Interest rate and its determinants…………………………………………………3-5 Analysis of regression equation………………………………………………….6-7 Analysis of correlation matrix……………………………………………………7-8 Conclusion…………………………………………………………........................8 Bibliography……………………………………………………………………….8 Determinants of Interest Rates in Bangladesh Executive Summary: Interest rate is applicable on all type of lending allover the world. Lending can be of
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1) A $100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year. 2) An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%. How much interest is earned in the first year and how much in the second year of this investment? 3) Which of the following investments has a larger future value? A $100 investment
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[pic] GENERAL MOTORS COMPANY Case Study Radencovici Octavian Tudorica Alexandru Lupu Mariana Bartoloni Giulio General Motors Corporation “Engineered without compromise” 1. General Presentation of the company One of the world’s largest automakers‚ GMC has it’s roots traced back to 1908. Also known as GM‚ this company is a United States-based automaker with its headquarters in Detroit‚ Michigan. After the General Motors Company was founded‚ it soon became known as one of the largest car manufacturers
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Interest rate is the rate paid by the debtor for using the money of creditor (http://www.investorwords.com/2539/interest_rate.html 1.12.2011.). Normally‚ the interest rate charged by percentage of the money borrowed for a period of one year. For example‚ debtor borrowed £100 from the bank for one year; the interest rate of that year is 10%‚ then the debtor has to pay £110 to the bank after one year for using their money‚ the extra £10 is the interest. Moreover‚ the interest rate played an important
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MBA Course Code 522 Name of Student ZAFFAR ABBAS Roll No AH505861 Semester spring 2012 Topic Assigned: Discuss the current rate of inflation in Pakistan and its impact upon business sector. Topic: Discuss the current rate of inflation in Pakistan and its impact upon business sector INFLATION ` Inflation means a rise in prices of goods and services in an economy over a period of time. Inflation is caused by some
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into a different league‚ while also expanding its global footprint dramatically. Jaguar and Land Rover are highly sophisticated vehicles‚ well-engineered and superbly designed‚ selling to the upper middle-class motorists around the world. While Tata Motors has been running its UK subsidiary at an arm ’s length‚ it could eventually benefit from its engineering‚ design and marketing expertise. However‚ the benefits have not been yet spread to India‚ and Tata’s range still relies on its pre-JLR cars.
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