Q5. The information below provides details of an off-exchange tailor-made loan obtained by Royal Oceania Cruises...

Q5. The information below provides details of an off-exchange tailor-made loan obtained by Royal Oceania Cruises to fund their operations.

Today is June 30 2019, which is the initiation date of the loan.
The Commonwealth Bank is loaning money to Royal Oceania Cruises.
The amount borrowed is $50 million.
The maturity date of the loan is three years.
A minimum interest payment of $1 million is due in each financial year. The financial year ends on 30 June each year.
The nominal interest rate associated with this loan is the Reserve Bank of Australia cash rate (as at June 30 2019 {1.25%}) plus a margin of 3.75%. This interest rate is compounded monthly and is fixed from the initiation date.
Assume the following payments are made by Royal Oceania Cruises during the term of the loan:
Monthly repayments of $2 million at the end of each month beginning on January 31 2020 until April 30 2021 (inclusive).
May 31 2021: a single payment of $2 million.
April 30 2022: a single payment of $10 million.
Given such payments, your job is to determine the outstanding value of the loan on the maturity date.

Solutions

Expert Solution

jeff jeffy answered 2 days ago

Next > < Previous

Related Solutions

The following information provides details of the cost, volume and cost drivers for the particular period...

The following information provides details of the cost, volume and cost drivers for the particular period in respect of ABC & Co. Products X Y Z Total Production and sales (units) 30,000 20,000 8,000 Raw material usage (units) 5 5 11 Direct material cost GHS 25 GHS 20 GHS 11 GHS 1,238,000 Direct labour hours 1⅓ 2 1 88,000 Machine hours 1⅓ 1 2 76,000 Direct labour cost 8 12 6 Number of production run 3 7 20 30 Number...

Build a amortization table for the loan below add extra payment to pay off early by...

Build a amortization table for the loan below add extra payment to pay off early by no more the 6 months (the loan payment must last 4.5 years even with early payoff) . Show the money saved. $35,000 loan, 5 years, 5.9% interest, monthly payments with no balloon. Create an annuity solution to find the payment in Excel (that's the N I/Y PV PMT FV) and then do the amortization table for it.

the table below provides information for a probability distribution. use the table below to answer the...

the table below provides information for a probability distribution. use the table below to answer the following questions. X p(X) 0 .10 1 .60 2 .30 a. calculate the variance. b. calculate the standard deviation

Give an example of how the balance of payments provides information concerning exchange rate determination.

The table below provides details on three government bonds (annual coupon payment, par value = $100)...

The table below provides details on three government bonds (annual coupon payment, par value = $100) Term to maturity (years) Coupon rate (% pa) Yield-to-maturity (% pa) 1 9.6 8.52 2 6.0 8.87 3 10.0 8.98 Another 3-year government bond paying a coupon rate of 1% pa (annual coupon payment, par value = $100). Is the yield of this bond equal to 9%? Why or why not? justify with calculation. All these bonds are issued by the same government.

Required information Use the following information for the Exercises below. Ramos Co. provides the following sales...

Required information Use the following information for the Exercises below. Ramos Co. provides the following sales forecast and production budget for the next four months: April May June July Sales (units) 670 750 700 770 Budgeted production (units) 610 740 710 710 The company plans for finished goods inventory of 290 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory...

[The following information applies to the questions displayed below.] Global Marine obtained a charter from the...

[The following information applies to the questions displayed below.] Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $310,000 of net income and the following selected transactions occurred in the order given: a. Issued 110,000 shares of the common stock at $46 cash per share. b. Reacquired 16,000 shares at $41 cash per share. c. Reissued 5,500 shares from treasury for $42...

1. The table below provides information about the cost of inputs and value of output for...

1. The table below provides information about the cost of inputs and value of output for the production of a road bike. Note there are four different stages of production. Raw materials Manufacturing Construction Sale by the retailer Rubber for one tire ($20) Tire maker sells tires for $30 each Bike mechanic puts everything together and sells the bike for $345 Retailer sells the bike for $500 Aluminum for the frame ($80) Other component materials ($70) Frame maker sells bike...

7-4) Required information Use the following information for the Exercises below. Ruiz Co. provides the following...

7-4) Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months: April May June July Sales (units) 690 770 720 810 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 138 units. Assume July's budgeted production is 720 units. In addition, each finished unit requires six pounds (lbs.) of...

The table below shows the information for exchange rates, interest rates and inflation rates in the...

The table below shows the information for exchange rates, interest rates and inflation rates in the US and Germany. Answer the following questions Current spot rate: $1.35/€ One-year forward rate: $1.30/€ Interest rate in the US: 4% Interest rate in Germany: 5% Inflation rate in the US: 3% Inflation rate in Germany: 3.5% (a) If you borrowed $1,000 for 1 year, how much money would you owe at maturity? (2 mark) (b) Find the 1-year forward exchange rate in $...

Subjects