following rates per annum on a $20 million five-year loan : Fixed rate Floating rate Company A 12.0% LIBOR + 0.1% Company B 13.4% LIBOR + 0.6% Company A requires a floating-rate loan; company B requires a fixed-rate loan. Design a swap that will net a bank‚ acting as intermediary‚ 0.1 % per annum and that will appear equally attractive to both companies. Q.2. Company X wishes to borrow U.S. dollars at a fixed rate of interest. Company Y wishes to borrow Japanese yen at a fixed rate of
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Changing the Rate of Reaction PART 1: PARTICLE SIZE Question: How does changing the particle size of marble (CaCO3) affect the rate of reaction when it is added to hydrochloric acid (HCl)? Hypothesis: If I change the particle size of marble to test how to change the rate of a chemical reaction‚ than the chemical reaction with the smallest marble particles will produce CO2 the quickest because the larger the surface area‚ the more place the hydrochloric acid will have to collide with the marble
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Andrew Haldane‚ head of financial stability at the Bank of England‚ one of the most influential central banks in the world. "If we’re lucky‚ the crisis cost will be paid by our children‚ but I think it is more likely that our grandchildren will pay it‚" he said‚ quoted by The Telegraph. Haldane said that banks should be more transparent about risky assets in their portfolios to restore investor confidence in the banking system and restart lending to businesses‚ thereby creating a ’trampoline’
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Compounding Factor (6%‚8) = 3‚000‚000 C * 9.90= 3‚000‚000 C = $303‚107.83 2. You have just taken out a mortgage for $575‚000‚ at a fixed rate of 4.75% per year‚ compounded monthly‚ and a term of 30 years. a) Calculate the monthly payments The payments must discount to a value that is equivalent to $575‚000 today‚ assuming a monthly rate of (4.75%/12)‚ or 0.39583% per month‚ for 360 months. C * Annuity discount factor (0.39583%‚360) = 575‚000 C * 191.70 = 575‚000 C = $2
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resulted in maintaining overall macroeconomic stability‚ ensuring dynamic economic growth and upholding inflation and national exchange rates at appropriate levels. In its turn these achevements promoted to implementation of substantial activities aimed at solution existing social probelms as well as tackling poverty. So the poverty level consequently came down from 46.7% in 2002 to 29.3% in 2005. In order to continue the positive process in improving the population’s welfare the State Program on Poverty
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of this practical is to investigate the effect of exercise on heart rate and breathing rate. We will use a digital heart rate monitor strapped on our chest while we perform different levels of exercise. A digital watch is also provided which receives signals from the heart rate monitor and displays your current heart rate on the screen. To measure the breathing rate at different levels of exercise‚ we measure the breathing rate before physical activity by counting the number of breaths in 10 seconds
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technological systems vary from country to country. In order to operate successfully‚ a multinational corporation needs a basic understanding and appreciation of the foreign business environment (Dowling B T & Mc Dougal M 2010‚ Business Concepts for English Practice). Constant assessment of the business environment of countries where multinational firms already operate in and where they are considering investing in is most important because of the advantages that come from these assessments. These
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Which one of the following statements is correct concerning annual percentages rates (APRs)? Answer: The APR is equal to the monthly interest rate multiplied by 12 Give an interest rate of zero percent‚ the future value of a lump sum invested today will always: Answer: remain constant Answer: II and IV A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a: corporation The capital structure of a firm refers to the
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FIN340 304 Tutorial week 3 Questions 1. How can a central bank use direct intervention to change the value of a currency? Explain why a central bank may desire to smooth exchange rate movements of its currency.. 2. Should the governments of Asian countries allow their currencies to float freely? What would be the advantages of letting their currencies float freely? What would be the disadvantages? 3. What is the impact of a weak home currency on the home economy‚ other things
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Part I – Relation between BI rate and banks interest rate A. BI rate We take the BI rate‚ as the variable being estimated‚ from the period of 2006 until 2012. We then take the average rate in each year‚ rather than taking the rate in each month. As a note to the year 2012‚ we take the average rate that ranges only from January until August. Figure 1. BI rate (Percent per Annum) Source : Indonesian Financial Statistics‚ Bank of Indonesia‚ http://www.bi.go.id/web/en/Statistik/Statistik+
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