Question: 4 Citi Bank in a short position, therefore Citi has done deal on spot-a-month for Rs 250 million withHBL Other information given below:

Issue Date

25-Sep-2019

Maturity Date

24-Sep-2020

Trade Date

02-MAR-2020 ( Thursday )

MTM (PKRV)

Given last page

Repo Rate

8.25/50

Calculate:

Find First & second Price (P1 & P2) & also in rupees, Deal / Days to Maturity, which bank involve in Repo & Reverse Repo Transaction?

Question: 5 UBL bank quote 12.56/52% for 150 million PIB 10 years to Askari Bank for forward 60 daysAskari bank yours to UBL.Other Information given below:

Issue Date

03-Sep-2013

Maturity Date

03-Sep-2023

Trade Date

25-April-2020

Coupon Rate

11.00% semi annually

CALCULATE:

1. Who will buy bond & at what rate
2. Accrued Days
3. Accrued Interest Amount
4. Clean Price
5. Dirty Price
6. TotalAmount

Question: 6. Dealer lent PKR 15,000,000 at 11.50% for 11 months (335 days) and forward rate (effective rate) for 4*11 (215 days) is 12.35%

Required:

1. What is your current borrowing rate for 4 months
2. How could you hedge your position
3. If the market is quoting 11.50/75 for 4vs11 at what rate will you deal.
4. If currently 6 month Kibor is 12% and 7 month Kibor is 12.50%, after 4month 6 Month Kibor is 11.25%, and7 month Kibor is 10.50%. How much FRA buyer & seller pay/receive.
5. What would be overall approximate profit & loss position of dealer after 4 Month