2020-11-24 50 - 2020-11-25 EF 10.03.58 Q 27 ed out of Question 7 (Short Answer) (5 marks) Brooke has just purchased a bank accepted bill with 180 days to maturity at the price of $48,500. The bank accepted bill has a face value of $50,000 (a). What is the discount rate per annum ? (Please round the final answer in percentage to two decimal places) (3 marks) (b) What is the yield to maturity per annum available to Brooke ? (Please round the final answer in percentage to two decimal places) (2 marks) Question tion 28 ered ed out of g question Question 8 (Short Answer) (5 marks) Lloyd Resources Ltd is a mining company that specialises in producing large flake graphite. To minimize its exposure to rising uncertainty in the graphite price caused by the COVID-19 pandemic, the company has decided to enter into a futures contract covering 50,000 tonnes of graphite. The contract is going to mature in May, 2021 with the futures price of $600 per tonne (a). From the perspective of a graphite seller, which position of the futures contract should the company undertake to lock in the graphite price ? (1 mark) (b). How much is the payoff of the futures contract for the company if the graphite price is $500 per tonne at maturity ? (2 marks) (c) Three months before the contract maturity, the price of graphite in the May-21 futures contract is quoted as $520 per tonne while the spot price of graphite at that time is $536 per tonne. What is the value of the basis per tonne of graphite ? What should be the value of the basis at contract maturity ? (2 marks)