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One-Punch man needs 38 million in 2 months for a 8-month period to finance a sushi restaurant in City Z. He wants to lock in
One-Punch man needs 38 million in 2 months for a 8-month period to finance a sushi restaurant in City Z. He wants to lock in the rate for a Euroyen loan over the borrowing period today. The current 2-month Euroyen loan rate is 5.9% and the 10-month Euroyen loan rate is 6.785%. What is the interest rate (annualized) One-Punch man can lock in based on these rates? Suppose Bank of London offers a forward forward that fixes the loan rate at 5.7816883974253%, shoud One-Punch man take this contract? (Please choose ONE answer from Options (a) - (d) and ONE answer from Options (e) - (f) or choose (g) if you cannot find the right answers. No partial mark will be given for this question) O a. 6.938% b. 6.631% O c. 1.254% d. 4.625% e. Yes, One-Punch man should go for the forward forward contract with the Bank of London f. No, One-punch man should lock in a rate through money market transactions O g. Not enough information One-Punch man needs 38 million in 2 months for a 8-month period to finance a sushi restaurant in City Z. He wants to lock in the rate for a Euroyen loan over the borrowing period today. The current 2-month Euroyen loan rate is 5.9% and the 10-month Euroyen loan rate is 6.785%. What is the interest rate (annualized) One-Punch man can lock in based on these rates? Suppose Bank of London offers a forward forward that fixes the loan rate at 5.7816883974253%, shoud One-Punch man take this contract? (Please choose ONE answer from Options (a) - (d) and ONE answer from Options (e) - (f) or choose (g) if you cannot find the right answers. No partial mark will be given for this question) O a. 6.938% b. 6.631% O c. 1.254% d. 4.625% e. Yes, One-Punch man should go for the forward forward contract with the Bank of London f. No, One-punch man should lock in a rate through money market transactions O g. Not enough information
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