0.0095 0.0008 S/JPY s/won S/CAD S/GBP S/AUS S/ZAR 0.0094 0.0006 0.7614 13034 0.7225 0.0606 0.7616 1.30B8 0.7226 0,0607 Fixed 0.64096 Libor 0.130% Current borrowing interest rates on loans: USA Japan South Korea Canada UK Australia South Africa 0.52596 1164% 0.66696 0.57796 0.61296 5.045% 0.0157 0.65494 0.156% 0.067 0.10294 4.535% BANK CURRENCY SWAP INTEREST RATE QUOTES AGAINST U.S. UBOR RATE Yen Won CADS G&P AUS ZAR Near Bid Ask Bid AKM Bid Ask94 Bid% Ask Bid Asks Bido Ask% Bid 6 Ask 1 0.630 0.6500515 0.535 1.154 1174 0.556 0.676 0.567 0.587 0.602 0.622 3.035 5.055 2 0.640 0.660 0.525 0.545 1.164 1184 0.666 0.586 0.577 0.597 0.612 0.632 5.045 5,065 30.650 0.670 0.535 0.555 1.174 1.194 0.676 0.696 0.587 0.607 0.622 0.642 5.055 5.075 4 0.660 0.680 0.545 0.565 1.184 1.204 0.686 0.706 0.597 0.617 0.632 0.652 5.065 5.085 S 0.670 0.690 0.556 0.575 1.194 1.214 0.696 0.716 0.607 0.627 0.642 0.662 5.075 5.095 60.680 0.700 0.565 0.585 1 204 1.224 0.706 0.726 0.617 0.637 0.652 0.672 5.089 5.105 7 0.690 0.710 0.875 0.595 1214 1.234 0.716 0.736 0.627 0.647 0.662 0.682 5.095 5.115 80.700 0.720 0.585 0.605 1.224 1.244 0.726 0.746 0.637 0.657 0.672 0.692 5.105 5.125 9 0.710 0.730 0.595 0.615 1.234 1.254 0.786 0.756 0.647 0.667 0.682 0.702 5.115 5.135 10 0.720 0.740 0.60S 0.625 1.244 1.264 0.746 0.766 0.657 0.677 0.692 0.712 5.125 5.145 Other summarised information: United Kingdom subsidiary profits generated quarterly Estimated 30% share profit in South African plant per month: Capital cost of new electric tool plant in South Africa: Capital cost of expanding existing plant in South Africa to electronic component manufacturing and electric tool manufacturinca E5000000 R2,000,000 R150,000.000 R120.000.000 The CEO considers the investment in South Africa by entering into an agreement with Cleste co to expand the existing plant by investing ZAR120,000,000. The CEO believes Mutterbyshould borrow the funds in USS at a fixed rate from a bank in the U.S.A. and convert it into ZAR for investment. For this purpose a S year (60 month currency swap transaction will be required. He wants to be provided with a Syaf currency swap proposal. Also depict the swap graphically for the CEO to see how the swag will work Workings: ZAR to be invested: Spot exchange rate to purchase ZAR for investment: Bamawing rate in U.S.A. to be used: Value in US$ to be borrowed: Show the figures that should Marks be applied in this column 120,000,000 1 mark 1 mark 1 mark 1 mark Swap transaction Marks in which currency the swap payment? in USS OF ZAR State whether the payment is Fixed or Libor State the percentage (%) the payment MidTesta para swag bank Text pays swap bank Mua Tesla, receives from swapbank MidTest receives from swap bank 1 mark 1 mark 1 mark 1 mark Complete the diagram below to show the swap transaction graphically by inserting the correct interest rate or currency values in all the arrows below. & marks (1 mark for each correct insertion in rows) MAT Swap Bank US Bank 10 tut FOREX Market 0.0095 0.0008 S/JPY s/won S/CAD S/GBP S/AUS S/ZAR 0.0094 0.0006 0.7614 13034 0.7225 0.0606 0.7616 1.30B8 0.7226 0,0607 Fixed 0.64096 Libor 0.130% Current borrowing interest rates on loans: USA Japan South Korea Canada UK Australia South Africa 0.52596 1164% 0.66696 0.57796 0.61296 5.045% 0.0157 0.65494 0.156% 0.067 0.10294 4.535% BANK CURRENCY SWAP INTEREST RATE QUOTES AGAINST U.S. UBOR RATE Yen Won CADS G&P AUS ZAR Near Bid Ask Bid AKM Bid Ask94 Bid% Ask Bid Asks Bido Ask% Bid 6 Ask 1 0.630 0.6500515 0.535 1.154 1174 0.556 0.676 0.567 0.587 0.602 0.622 3.035 5.055 2 0.640 0.660 0.525 0.545 1.164 1184 0.666 0.586 0.577 0.597 0.612 0.632 5.045 5,065 30.650 0.670 0.535 0.555 1.174 1.194 0.676 0.696 0.587 0.607 0.622 0.642 5.055 5.075 4 0.660 0.680 0.545 0.565 1.184 1.204 0.686 0.706 0.597 0.617 0.632 0.652 5.065 5.085 S 0.670 0.690 0.556 0.575 1.194 1.214 0.696 0.716 0.607 0.627 0.642 0.662 5.075 5.095 60.680 0.700 0.565 0.585 1 204 1.224 0.706 0.726 0.617 0.637 0.652 0.672 5.089 5.105 7 0.690 0.710 0.875 0.595 1214 1.234 0.716 0.736 0.627 0.647 0.662 0.682 5.095 5.115 80.700 0.720 0.585 0.605 1.224 1.244 0.726 0.746 0.637 0.657 0.672 0.692 5.105 5.125 9 0.710 0.730 0.595 0.615 1.234 1.254 0.786 0.756 0.647 0.667 0.682 0.702 5.115 5.135 10 0.720 0.740 0.60S 0.625 1.244 1.264 0.746 0.766 0.657 0.677 0.692 0.712 5.125 5.145 Other summarised information: United Kingdom subsidiary profits generated quarterly Estimated 30% share profit in South African plant per month: Capital cost of new electric tool plant in South Africa: Capital cost of expanding existing plant in South Africa to electronic component manufacturing and electric tool manufacturinca E5000000 R2,000,000 R150,000.000 R120.000.000 The CEO considers the investment in South Africa by entering into an agreement with Cleste co to expand the existing plant by investing ZAR120,000,000. The CEO believes Mutterbyshould borrow the funds in USS at a fixed rate from a bank in the U.S.A. and convert it into ZAR for investment. For this purpose a S year (60 month currency swap transaction will be required. He wants to be provided with a Syaf currency swap proposal. Also depict the swap graphically for the CEO to see how the swag will work Workings: ZAR to be invested: Spot exchange rate to purchase ZAR for investment: Bamawing rate in U.S.A. to be used: Value in US$ to be borrowed: Show the figures that should Marks be applied in this column 120,000,000 1 mark 1 mark 1 mark 1 mark Swap transaction Marks in which currency the swap payment? in USS OF ZAR State whether the payment is Fixed or Libor State the percentage (%) the payment MidTesta para swag bank Text pays swap bank Mua Tesla, receives from swapbank MidTest receives from swap bank 1 mark 1 mark 1 mark 1 mark Complete the diagram below to show the swap transaction graphically by inserting the correct interest rate or currency values in all the arrows below. & marks (1 mark for each correct insertion in rows) MAT Swap Bank US Bank 10 tut FOREX Market