Question
Hi, this is from my financial markets and institutions practice exam, i understand some segment but would appreciate a macreconomic answer. using correct terms and
Hi, this is from my financial markets and institutions practice exam, i understand some segment but would appreciate a macreconomic answer. using correct terms and theories, cheers :) a) In June 2020, Singapore Airlines Limited undertook a renounceable rights issue of new ordinary shares in the capital of the company and mandatory convertible bonds to entitled shareholders. Explain renounceable rights issue of ordinary shares and discuss the advantages and disadvantages. Explain to Jaleel what is convertible bonds and why would Singapore Airlines undertake mandatory convertible bonds to entitled shareholders?
b) Market participants, including financial institutions, fund managers and corporations, must understand monetary policy setting impacts on economic activity and business cycle. A central bank will typically implement monetary policy settings in order to achieve certain economic outcomes over a business cycle. Choose two countries from the list below, describe the intermediate target for monetary policy, and explain the implementation process of the monetary policy in the two countries you selected. Give examples of different economic indicators that may give an insight into the future stages of a business cycle. the United States Australia Singapore China Russia New Zealand
c) On the 3rd May the RBA increased the official cash rate by 0.25%. The current official cash rate as determined by the Reserve Bank of Australia (RBA) is 0.35%. Explain to Jaleel What are the channels through which the cash rate influences Monetary policy and how does the monetary policy transmit to the overall economy? (4 marks) c) Obtain weekly data from Refinitiv Eikon and plot the interest rates (bid and ask midrate) on 2-year commonwealth government bond (AU2Y-TBOND) and 10 year commonwealth government bond (au 10Y-TBOND) from January 2020. Determine the shape of the yield curve by using one of the interest rate theories you know and share your opinion on whether the Australian economy is heading for a boom or for a recession. Explain your choice.
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