olspanda8
Jul 31, 2010, 08:05 AM
Please show the workings for these questions:
1) If RM3.45 million Treasury Bills with 150 days to maturity is sold at 4.25 %, what are the proceeds?
2) If RM1.5 million Treasury bills with 150 days to maturity is sold at 1.75 percent, the proceeds received are as follows:
3. On 15th September, 2005, Ambank dealer enters into a 7 day Repo with PB dealers at 5.25 percent Repo rate. Ambank dealer delivers to PB dealer nominal RM2.5 million, 3.25 percent, 9/2005 Cagamas Bonds due 30th October, 2010. The transaction price is 103. Using these information, answer the following:
a) Calculate the proceed that PB dealer paid to Ambank dealer on 15th September, 2005.
b) On what date does the Repo matures whereby PB dealer have to return the RM2.5 million, 3.25 percent Cagamas Bonds to Ambank dealer?
c) How much does PB dealer will receive from Ambank dealers and on what date?
4. If RM 3.5 million Malaysian Government Securities bearing coupon rate of 4.35 percent has accrued interest of 30 days since the last interest payment date is sold at RM104, what are the settlement proceeds if the number of days in the coupon period in which settlement takes place is 120?
5. A Negotiable Certificate of Deposit for RM 250,000 is issued for 65 days at 5.25 percent per annum is sold when it has 25 days to maturity at 5 percent.
a) What are the sales proceeds?
b) If the Negotiable Certificate of Deposits is sold when it has 15 days to maturity, what are the new sales proceeds?
c) If an investor bought and sold the Negotiable Certificate of Deposit for ten days, what would be his profit?
6. Zizi wishes to draw a Bankers Acceptance for RM450,000 to facilitate his trade for 45 days. The rate of discounting is 3.25 percent per annum. Using these information;
a) calculate the discounted proceeds.
b) calculate the discounted proceeds and the effective rate of return on the Bankers Acceptance, if the bank holds the Bankers Acceptance for 15 days and then sells the Bankers Acceptance at a rate of 2.15 percent per annum.
7. Danny wishes to draw RM1.5 million Banker’s Acceptance for 60 days. At present, the rate of discounting is 6.0 percent per annum, while the acceptance commission rate is 0.55 percent per annum. Calculate the acceptance commission for Danny.
8. On 26th August, 2003, RHB Bank dealer enters into a 10 day Repo with Maybank dealers at 4.5 percent Repo rate and transaction price of 185.00. In return, Maybank dealer received nominal RM2.25 million, 5.7 percent, 1/2003 Cagamas Bonds due 27th February, 2008. Using these information, calculate how much proceeds does each RHB Bank dealer and at what date?
9. A Negotiable Certificate of Deposit for RM100,000 issued for 60 days at 7 percent per annum is sold when it has 10 days to maturity at 5.5 percent. What are the sales proceeds?
10. Helen wishes to draw RM2.55 million Banker’s Acceptance for 60 days. At present, the rate of discounting is 4.5 percent per annum, while the acceptance commission rate is 0.43 percent per annum. Using these informations, answer the following questions:
a) Calculate the acceptance commission for Helen.
b) Calculate the discounted proceeds.
c) If the bank holds the Banker’s Acceptance for 25 days and then sell it at a rate of 3.75 percent per annum, what is the discounted proceeds and the effective rate of return on the Banker’s Acceptance.
11. On 26th August, 2003, AmBank dealer entered into a 7 day Repo with RHB Bank dealers at 3.25 percent Repo rate and transaction price of 142.00. In return, RHB Bank dealer received nominal RM2.25 million, 5.7 percent, 1/2000 Cagamas Bonds due 28th February, 2008. Using these information, calculate how much proceeds did each AmBank dealer and RHB Bank dealer receive and at what date? (10 marks)
12. A Bond carrying a coupon rate of 3.15 % and has an outstanding 4 years to maturity is offered at RM103. Calculate the Yield to Maturity and the Current Yield.
1) If RM3.45 million Treasury Bills with 150 days to maturity is sold at 4.25 %, what are the proceeds?
2) If RM1.5 million Treasury bills with 150 days to maturity is sold at 1.75 percent, the proceeds received are as follows:
3. On 15th September, 2005, Ambank dealer enters into a 7 day Repo with PB dealers at 5.25 percent Repo rate. Ambank dealer delivers to PB dealer nominal RM2.5 million, 3.25 percent, 9/2005 Cagamas Bonds due 30th October, 2010. The transaction price is 103. Using these information, answer the following:
a) Calculate the proceed that PB dealer paid to Ambank dealer on 15th September, 2005.
b) On what date does the Repo matures whereby PB dealer have to return the RM2.5 million, 3.25 percent Cagamas Bonds to Ambank dealer?
c) How much does PB dealer will receive from Ambank dealers and on what date?
4. If RM 3.5 million Malaysian Government Securities bearing coupon rate of 4.35 percent has accrued interest of 30 days since the last interest payment date is sold at RM104, what are the settlement proceeds if the number of days in the coupon period in which settlement takes place is 120?
5. A Negotiable Certificate of Deposit for RM 250,000 is issued for 65 days at 5.25 percent per annum is sold when it has 25 days to maturity at 5 percent.
a) What are the sales proceeds?
b) If the Negotiable Certificate of Deposits is sold when it has 15 days to maturity, what are the new sales proceeds?
c) If an investor bought and sold the Negotiable Certificate of Deposit for ten days, what would be his profit?
6. Zizi wishes to draw a Bankers Acceptance for RM450,000 to facilitate his trade for 45 days. The rate of discounting is 3.25 percent per annum. Using these information;
a) calculate the discounted proceeds.
b) calculate the discounted proceeds and the effective rate of return on the Bankers Acceptance, if the bank holds the Bankers Acceptance for 15 days and then sells the Bankers Acceptance at a rate of 2.15 percent per annum.
7. Danny wishes to draw RM1.5 million Banker’s Acceptance for 60 days. At present, the rate of discounting is 6.0 percent per annum, while the acceptance commission rate is 0.55 percent per annum. Calculate the acceptance commission for Danny.
8. On 26th August, 2003, RHB Bank dealer enters into a 10 day Repo with Maybank dealers at 4.5 percent Repo rate and transaction price of 185.00. In return, Maybank dealer received nominal RM2.25 million, 5.7 percent, 1/2003 Cagamas Bonds due 27th February, 2008. Using these information, calculate how much proceeds does each RHB Bank dealer and at what date?
9. A Negotiable Certificate of Deposit for RM100,000 issued for 60 days at 7 percent per annum is sold when it has 10 days to maturity at 5.5 percent. What are the sales proceeds?
10. Helen wishes to draw RM2.55 million Banker’s Acceptance for 60 days. At present, the rate of discounting is 4.5 percent per annum, while the acceptance commission rate is 0.43 percent per annum. Using these informations, answer the following questions:
a) Calculate the acceptance commission for Helen.
b) Calculate the discounted proceeds.
c) If the bank holds the Banker’s Acceptance for 25 days and then sell it at a rate of 3.75 percent per annum, what is the discounted proceeds and the effective rate of return on the Banker’s Acceptance.
11. On 26th August, 2003, AmBank dealer entered into a 7 day Repo with RHB Bank dealers at 3.25 percent Repo rate and transaction price of 142.00. In return, RHB Bank dealer received nominal RM2.25 million, 5.7 percent, 1/2000 Cagamas Bonds due 28th February, 2008. Using these information, calculate how much proceeds did each AmBank dealer and RHB Bank dealer receive and at what date? (10 marks)
12. A Bond carrying a coupon rate of 3.15 % and has an outstanding 4 years to maturity is offered at RM103. Calculate the Yield to Maturity and the Current Yield.