ACI-DEALING CERTIFICATE (3I0-008) - ACI

How many USD would you have to invest at 3.5% to be repaid USD125 million (principal plus interest)<br />
in 30 days?<br />
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<img src="https://examsqa.com/storage/question-images/aci-dealing-certificate-3i0-008_page_1_Im2.jpg" alt="Exhibit" style="max-width: 100%; height: auto;" /><br />
<br />
3/75<br />
<br />
<img src="https://examsqa.com/storage/question-images/aci-dealing-certificate-3i0-008_page_2_Im3.jpg" alt="Exhibit" style="max-width: 100%; height: auto;" /><br />
<br />
MONEY MARKET Certificates of deposit annual basis<br />
proceeds at maturity = face value (1 + coupon x term)<br />
secondary market proceeds = Proceeds at maturty<br />
<br />
1. yield x day count<br />
annual basis Discount-paving instruments quoted as a true vield Discount-paying instruments quoted as a rate of discount rate of discount annual basis<br />
discount amount = face value rate of discount x day count<br />
secondary market proceeds =<br />
secondary market proceeds = face value (1. ate of disman ba day count) annual basis<br />
true yield = rate of discount x day count<br />
annual basis Forward price of sell/buy-back<br />
forward price = (repurchase price - accrued interest on collateral at termination) 100<br />
nominal price of collateral annual basis 4/75<br />
<br />
<img src="https://examsqa.com/storage/question-images/aci-dealing-certificate-3i0-008_page_3_Im4.jpg" alt="Exhibit" style="max-width: 100%; height: auto;" /><br />
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FORWARD-FORWARDS & FORWARD RATE AGREEMENTS forward - forward rate = interest rate longpend day count ingeniod day count forward forward period 1 interest rate ghat period X day count hot period annual basis ((FRA rate - settlement rate x day count FRA settlement amount - notional principal amount 1+ Setlement rate x day count annual basts annual basis annual basis annual basis 5/75<br />
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<img src="https://examsqa.com/storage/question-images/aci-dealing-certificate-3i0-008_page_4_Im5.jpg" alt="Exhibit" style="max-width: 100%; height: auto;" /><br />
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price- Coupon Dirty price of bond with annual coupons dirty price = n" cashflow first cashflow second cashflow -+ Л +. (1 + yield) annual basis Duration at issue or on a coupon date Macaulay Duration = Macaulay Duration (present value of first coupon amount x time to first coupon)+ (present value of second coupon amount x time to secondcoupon) + .... + (present value of (last coupon amount + nominal amount)x time to last coupon)] net present value of bond Modified Duration compounding frequency) Yield Calculating zero-coupon yield from an annual vield-to-maturity (bootstrapping) zero - coupon yieldfor n- year term 7 1/100<br />
<br />
- inal coupon amount + nominal amour<br />
plied present value of final coupon and nominal amour 6/75<br />
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<img src="https://examsqa.com/storage/question-images/aci-dealing-certificate-3i0-008_page_5_Im6.jpg" alt="Exhibit" style="max-width: 100%; height: auto;" /><br />
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FOREIGN EXCHANGE Forward FX rate<br />
forward rate = spot rate annual basis quoted curency<br />
interest rate tase curency X day count annual basis base curency Covered interest arbitrage synthetic quoted currency interest rate = interest rate base cumency X day count forward rate annual basis quoted cumency ) spot rate day count annual basisbase currency synthetic base currency interest rate = interest rate quoted cumency day count interest rate quoted cumency day count spot rate -1 annual basis bare cumency Forward rate day count annual basis quoted currency<br />
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<img src="https://examsqa.com/storage/question-images/aci-dealing-certificate-3i0-008_page_6_Im7.jpg" alt="Exhibit" style="max-width: 100%; height: auto;" />

What is the day count/annual basis convention for euroyen deposits?

Todays date is Thursday 12th December. What is the spot value date? Assume no bank holidays.

EURIBOR is the:

Which of the following rates represents the highest investment yield in the euromarket?