Top 2 AFM And Interest Rate Questions You Need To Solve


0

6

 

MIX OF AFM AND INTEREST RATE:

Q.1) GBP rate in terms of Indian Rupees is 80 in spot market. Pound commands 2.5% premium per annum.

(a)    Calculate 6 months forward rate

(b)   If interest rate in India for 6 months deposit is 8% per annum. Calculate interest rate per annum in Britain (for 6 months deposits)

(Ans.: (a) GBP INR 81. (b) 5.43%)

 

Q.2) USD INR 48 Spot

Interest rates: India 9% per annum and US of A 4.7835% per annum.

(a)    Calculate 3 months forward rate

(b)   Calculate AFM.

(Ans.: 48.50 and 4.17%)


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

15 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format