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The value of A = 8.0% in New Zealand dollars. The value of D = 3.0% in U.S. dollars. Write your answer to TWO (2)

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The value of A = 8.0% in New Zealand dollars. The value of D = 3.0% in U.S. dollars. Write your answer to TWO (2) decimal places, e.g. 1.00. 21.1 The value of B = % in New Zealand dollars. [1 mark] 21.2 The value of C = % in New Zealand dollars. [1 mark] 21.3 The value of E = % in U.S. dollars. [1 mark] 21.4 The value of F = % in U.S. dollars. [1 mark] Company NZ is a New Zealand firm that wants to borrow U.S. dollars at a fixed rate of interest. Company US is a multinational firm that wishes to borrow New Zealand dollars at a fixed rate of interest. They have been quoted the following rates per annum (adjusted for tax differences). New Zealand Dollars U.S. Dollars 8% 5% Company NZ Company US 7% 3% Design a swap contract that will net a bank acting as intermediary 20 basis points per annum. B A D Company NZ Bank Company US E F The value of A = 8.0% in New Zealand dollars. The value of D = 3.0% in U.S. dollars. The value of A = 8.0% in New Zealand dollars. The value of D = 3.0% in U.S. dollars. Write your answer to TWO (2) decimal places, e.g. 1.00. 21.1 The value of B = % in New Zealand dollars. [1 mark] 21.2 The value of C = % in New Zealand dollars. [1 mark] 21.3 The value of E = % in U.S. dollars. [1 mark] 21.4 The value of F = % in U.S. dollars. [1 mark] Company NZ is a New Zealand firm that wants to borrow U.S. dollars at a fixed rate of interest. Company US is a multinational firm that wishes to borrow New Zealand dollars at a fixed rate of interest. They have been quoted the following rates per annum (adjusted for tax differences). New Zealand Dollars U.S. Dollars 8% 5% Company NZ Company US 7% 3% Design a swap contract that will net a bank acting as intermediary 20 basis points per annum. B A D Company NZ Bank Company US E F The value of A = 8.0% in New Zealand dollars. The value of D = 3.0% in U.S. dollars

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