#### All Pages

Assignment Help Finance Basics
##### Reference no: EM13117244

In the cash market, an American Bank (A) can issue either yen 1 billion worth of bonds yielding 5.3% p.a. and priced at par or \$10 million worth of bonds yielding 6.5% p.a. and priced at par.

At the same time, a Japanese bank (B) can either issue yen 1 billion worth of bonds yielding 5.5% p.a. and priced at par of \$10 million worth of bonds yielding 6% p.a. and priced at par.

Current yen dollar rates are \$0.01/yen.

After the swap, the American Bank prefers to make payments in Dollars, and the Japanese Bank prefers to make payments in Yen .

All interest payment are annual. An intermediary has concluded a swap deal for both banks. Assume a maturity of 7 years.

If a swap intermediary fee is 30 basis points (US\$) and both (A) and (B) gain 20 points from the swap, what are the terms of the spread? Show all payments!

#### What is the sample size

Given this result from a non-directional Pearson's correlation: r(13) = -.78

#### How much is his promise worth right now

Your uncle promises to give you \$550 per quarter for the next five years starting today. How much is his promise worth right now if the interest rate is 8% compounded quarte

#### A risk manager use to predict future losses

a. Why is loss forecasting necessary when making a decision about whether to retain or transfer loss exposures?b. What techniques can a risk manager use to predict future loss

#### Poisson model with a constant parameter

Determine the probability that the paediatrician records exactly 3 misdiagnoses in a year; determine also the probability of recording 3 or fewer misdiagnoses. Compare

#### Compute the mean, median and mode

A manager has selected a random sample of his league consumers. he asked them to record the number of games they bowl during the month December, including both league and open

#### What is the price of this bond the annualized yield

Consider a 10-year bond that pays a 5 percent coupon semi-annually with a face value of \$1000. What is the price of this bond if the annualized yield to maturity of 5 percen

#### Five functions of managers and the fourteen principles

Question 1: Henri Fayol is responsible for developing ____. Question 2: ____ is best known for developing the five functions of managers and the fourteen principles of managem

#### Define diversification

HowRu, a private card business and its subsidiary, have a 14% share of the greeting card market. The card business is subject to seasonal cycles, with sales being highest du