Social Science Questions

a company lodged a formal complaint with the FCA about the conduct of THEIR enforcement officers on a recent scheduled visit. They are subsequently unhappy with the regulators response and wish to take this further. To whom can they escalate their grevance

Jeremy is a with profit insurance policy holder. He can be reassured of the financial standing of the insurance company by the specific work of who....

Hoops Advice Ltd have been identified by the FCA as a firm 'whose financial failure, even if disorderly, would be unlikely to cause significant harm to consumers or market integrity'. As a result, as far as their prudential regulation is concerned, Hoops Advice Ltd is most likely to be categorised as a...

Car company looking to provide finance solutions and extended warranties for their customers. who must they seek authorisation from

The Antelas AG four-year floating-rate note pays three-month MRR of -0.55% plus 250 bps. The floater is priced at 102 per 100 of par value. Assuming the 30/360 day-count convention and evenly spaced periods, calculate the discount margin for the floating-rate note.

To ensure the policies and practices are reviewed appropraitely in the interest of consumers, the FCA must liaise with ....

Suppose that an analyst prefers to convert money market rates to a semiannual bond basis so that the rates are directly comparable to yields on bonds that make semiannual coupon payments. The quoted rate for a 91-day Indian rupee T-bill is 3.50%, quoted as a bond equivalent yield, which means its periodicity is 365/91. We use the periodicity conversion formula covered in a previous lesson to convert from a periodicity m of 365/91 to n of 2:

using the previous results : Suppose that after 31 days, the insurance company sells the CD. At the time of the sale, the quoted add-on rate for a 60-day CD is 0.21%. Calculate the sale price for the CD.

DMT Corp. issued a five-year floating-rate note (FRN) that pays a quarterly coupon of three-month market reference rate (MRR) plus 125 bps. The FRN is priced at 96 per 100 of par value. Assuming a 30/360-day count convention, evenly spaced periods, and constant three-month market reference rate (MRR) of 5%, the discount margin for the FRN is closest to:A.180 bps.B.221 bps.C.400 bps.

difference between the discount rate (DR) and the add-on rate (AOR) for money market instruments, and provides the correct formulas for each?A. The DR is based on the price at issuance, while the AOR is based on the face value at maturity. The formulas are DR=(Year/Days)×(FV−PV)/PVAOR=(Year/Days)×(FV−PV)/FVB. The DR is applied to instruments like commercial paper and Treasury bills, while the add-on rate is applied to instruments like bank certificates of deposit and repos. The formulas areDR=(Year/Days)×(FV−PV)/FVAOR=(Year/Days)×(FV−PV)/PVC. The DR is typically quoted as the face value at maturity, while the add-on rate is typically quoted as the price at issuance. The formulas are DR=(Year/Days)×(FV−PV)/FVAOR=(Year/Days)×(FV−PV)/PV

A German insurance company buys a 91-day certificate of deposit with a quoted add-on rate of 0.40% for a 365-day year.If the initial payment amount is EUR20 million, calculate the redemption amount due at maturity.

. A 91-day UK gilt (Treasury bill) has a face value of GBP2 million, a discount rate of 0.25%, and a price of GBP1.9 million. If a year has 366 days, the discount rate for the UK gilt is closest to:A.0.1821.B.0.2011.C.0.2134.

A portfolio manager has asked you to evaluate the following Thai baht-denominated money market instruments with equivalent credit risk.180 daysShort-Term Thai T-BillsQuotation Basis: Discount RateNumber of Days in the Year: 360Quoted Rate: 4.78%Thai Bank Certificate of DepositQuotation Basis: Discount RateNumber of Days in the Year: 365Quoted Rate: 4.81%Thai Corporate Commercial PaperQuotation Basis: Add-On RateNumber of Days in the Year: 365Quoted Rate: 4.85%Which instrument has the highest rate of return on a bond equivalent yield basis?A)Short-term Thai T-billsB)Thai bank certificate of depositC)Thai corporate commercial paper

Which of the following best describes the discount rate for money market instruments?A. The interest earned on an instrument, derived from the difference between the price and face value, expressed as a percentage of the face value and multiplied by the periodicity of the annual rate.B. The interest earned on an instrument, derived from the difference between the price and face value, expressed as a percentage of the purchase price and compounded semiannually.C. The interest earned on an instrument, derived from the coupon payments made during its term, expressed as a percentage of the face value and compounded annually.D. The interest earned on an instrument, derived from the difference between the price and face value, expressed as a percentage of the face value and compounded quarterly.

Identify the correct relationship for a money market instrument quoted on a discount rate basis:A. PV=FV×(1−Days/Year×DR)B. FV=PV×(1−Year/Days×DR)C. PV=FV/(1+DR)^Days/Year

Suppose that the MRR for the Antelas AG four-year floating-rate note is on a three-month basis and the quoted margin is 250 bps. The floater is priced at 97 per 100 of par value. Calculate the discount margin for the floater assuming that three-month MRR is constant at -0.55%. Assume a 30/360 day-count convention and evenly spaced periods.

Commercial Finance Partners AG (CFP Bank) issues 90-day certificates of deposit (CDs) to fund its floating-rate loans made to customers. The objective is to maintain a match between the bank’s assets (floating-rate loans) and its funding sources. The quoted add-on rate for its 90-day CD is 0.12%, assuming a 365-day year. If the initial principal amount is EUR20 million, the redemption amount due at maturity is found by rearranging Equation 4 and entering PV = 20,000,000, Days = 90, Year = 365, and AOR = 0.0012.

Suppose that we are pricing a two-year, semi-annual FRN that pays MRR plus 0.50%. Assume MRR is 1.25% and the yield spread required by investors is 40 bps. For Equation 1, we have the following inputs:

A 365-day year bank certificate of deposit has an initial principal amount of USD96.5 million and a redemption amount due at maturity of USD100 million. The number of days between settlement and maturity is 270. The add-on rate of the certificate of deposit is closest to:3.63%.4.82%.4.90%.

A two-year Italian floating-rate note pays three-month Euribor of -0.50% plus 250 bp. The floater is priced at 99 per 100 of par value. Assuming the 30/360 day-count convention and evenly spaced periods, the discount margin for the floater is closest to:201 bps.251 bps.300 bps.