International Finance And Treasury - Study Mode

[#696] If 175 days T-bill have maturity of one year with value of $8000 and face value is $10000 then reported discount yield is
Correct Answer

(B) 41.14%

[#697] Repurchase price is $380, selling price is $310 and number of days till maturity are 4 then yield of repurchase agreement is 2500
Correct Answer

(C) 16.58%

[#698] Forgone amount for holding balances of cash at time they are received is classified as
Correct Answer

(C) opportunity cost

Explanation

Solution: Forgone amount for holding balances of cash at time they are received is classified as opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.

[#699] As compared to US certificate of deposit, interest rate paid on Eurodollar certificate of deposits is
Correct Answer

(A) higher than other one

Explanation

Solution: As compared to US certificate of deposit, interest rate paid on Eurodollar certificate of deposits is higher than other one.

[#700] Factors considered by rating agencies on issuing bonds are
Correct Answer

(D) all of above

Explanation

Solution: Factors considered by rating agencies on issuing bonds are position in industry, overall financial strength and issuer.