What rate should you quote

Assignment Help Accounting Basics
Reference no: EM132761496

Question: You are a bank and your customer asks you to quote an agreed-upon rate for a 3-month FRA that starts in 3 months. You observe the following rates:

3 months ( 90 days) rate: 3%;

6 months (180 days) rate: 4%;

9 months (270 days) rate: 5%.

What rate should you quote?

Reference no: EM132761496

Questions Cloud

What is the population density of the original sample : What is the population density of the original sample.
Compute the depreciation basis and annual depreciation : We assume that the company you selected is considering a new project. The project has 8 years' life. This project requires initial investment of $550 million.
Which species of bacteria does not possess cell wall : Enumerate the stuctures and importance of each structure in a bacterial cell. Which species of bacteria does not possess cell wall. How do they survive even wi
What unit cost is relevant for establishing minimum selling : What unit cost is relevant for establishing a minimum selling price for these units? What is the financial advantage of accepting the special order?
What rate should you quote : You are a bank and your customer asks you to quote an agreed-upon rate for a 3-month FRA that starts in 3 months. You observe the following rates.
What is the average days to collect the receivables : What is the average days to collect the receivables for each company? Assuming both companies use the percent of receivables allowance method.
What is the equity at the end of the period : $5000 income received in advance incorrectly recorded as income earned. After correcting the mistake, what is the Equity at the end of the period
What is the value of inventory for each company : Suppose that on October 21, 2019, both Company A and Company B sold inventory with a cost of $61,700. The updated balance of inventory as at October 1.
How much of the premium will be recognised as an expense : How much of the premium will be recognised as an expense for the year ended 31 December 2020 and how much will be treated as an asset

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd