(1) if five year interest rates on USD and CDN are 6% and 5% respectively, and the current spot rate for CDN is $0.90/USD. what is the imlied five year CDN spot rate?

(2) Suppose that the Brazilian real devalues by 40% against the USD. By how much will the dollar appreciate against the real?

(3) What is the 90 day forward rate if US interest is 9%, Japanese interest is 7%, and the Spot rate is $0.003700/ Yen? ( assume there are no arbitrage and 360 day and interest rate parity)

(4) what is the annualized premium on the 90 day forward rate if the spot rate is $0.003800/Yen and the forward rate is $0.003828/ Yen ?

(5) Suppose annual inflation rate in the US and Mexico are expected to be 6% and 80% respectively, over the next several years. If the current spot rate for Mexico peso is $0.005. what is the best estimate of the peso's spot value in 3 years?

(9) if the expected inflation rate is 5% and the real required return is 6% , then the fisher effect says that the nominal interest rate should be.....

(10) During the 1992 currency crisis, the bank of england borrowed DM 33 billion from the Bundesbank when a pound was worth DM 2.78 or $1.912. It sold these DM in the foreign exchange market for pounds and repaid these DM at the post- crisis rate of DM 2.50:pound 1. By then, the dollar: pound exchange rate was $1.782: pound 1. During that time, by what percentage had the pound sterling appreciated/ depreciated against the dollar?

Relaxation as a Coping Strategy:

College Swim Team

Introduction:

In February of this year, the captains of both the men's and women's swim teams at my college met with a sport psychologist with a request to help them deal with some of the problems that they were facing in the competitive environment. With very little time to the target meets of the season (6 weeks to conference and only 8 weeks to the NCAA meet), the project took on more of a "fix-it" approach than an educational approach.

Intervention:

A "trouble-shooting" meeting was set up so that the athletes could help prioritize their concerns. A simple strengths/weaknesses chart was filled out by each swimmer. From this list a list of perceived weaknesses were used to develop the focus of the program. The most frequently occurring weakness responses were:

a . Lack of Confidence
b . Fear of Failure
c . Inability to Relax

Following the initial meeting, an impromptu meeting was scheduled to help the athletes put their perceived weaknesses into perspective. At this time, the progressive implementation strategy was explained. The strategies were implemented every Sunday evening until the target meets (with each athlete received a paper fully explaining the strategy at each session). The strategy meetings consisted of:

I . Troubleshooting Meeting
2. Self-led Relaxation
3. Visualizing Success
4. Affirmation
5. Mastery Rehearsal and Mastery/Coping Tapes

Each session lasted from 1-11/2 hours and were well attended. After completion of the Conference Swim Championships, the athletes evaluated their performances and the
effectiveness of the program on their performances. Eleven participants completed a survey asking for responses based on a Likert scale. We also asked for responses to open-ended questions and for comments on each section.

Overview:

Troubleshooting: The Likert scale indicated a very strong positive response to the troubleshooting section. Most respondents agreed with the question regarding whether this portion aided in identifying weaknesses and focusing, with only one person disagreeing.
Relaxation: The relaxation portion showed similar positive responses. The athletes found the guided exercise to be the most helpful, but seven athletes were able to successfully utilize this strategy independently two or more times each week. The athletes had the most difficulty implementing the relaxation strategy during the meet situation.

Imagery: Responses were also favorable for the imagery portion of the project, illustrating to the athletes and us that we all have the ability to visualize. The guided exercise was once again the most helpful section. The response to the independent usage was moderate. Visualization requires practice, and the time was limited for implementation, therefore, we assumed that the swimmers did not feel as comfortable using this strategy on their own. We inquired about the type of situation the athletes visualized. Ten respondents visualized their event at race pace. Many also used a combination of visualizing different speeds and particular points of their event as well as the total performance. Seven athletes visualized one or more times each week. Five utilized imagery daily or nearly every day.

Affirmation: The respondents felt that this section was very important. The written exercise to identify low confidence areas appeared to have been very helpful. Affirmation is a very personal tool and, as a result, is very subjective. The Likert scale indicated a positive response overall. However, the athletes felt that setting their own strategies was more helpful than the written exercise we provided. All respondents felt the affirmation exercises had a positive effect outside of swimming. The methods of positive affirmation most commonly used were talking to oneself and signs and notes in visible places. One respondent also commented that "Believing" was an important aspect of affirmation.

Mental Rehearsal and Coping Scripts: Most respondents felt that the guidelines we provided were helpful, although there were three requests for more detailed instructions and possibly samples of tapes and scripts. The responses to questions based on the Likert scale were more widely distributed than those for the other sections. It is our belief that the more moderate positive feedback is due to the lack of time necessary to become comfortable with the tapes.

The athletes concentrated on the areas of imagery most frequently. Affirmation and relaxation were commonly combined with imagery or used alone. One comment identifies an important feature of mental arousal, "And I was nervous, but was 'OK' about it." Arousal is necessary for performance as long as it is under control. Mental Rehearsal and Coping tapes help build the confidence necessary to attain this control.

Nine respondents answered affirmatively when asked whether our method of mental training was effective in helping to achieve their goals. One respondent answered negatively, and one was unsure. One swimmer responded that simply making the script and tape had a strong effect on her concentration level and performance, even though she only listened to the tape two or three times.
We also inquired as to how each respondent felt the program was effective. Relaxation, focus, and positive feelings helped the respondents believe they were capable. The aspects of the program found to be most helpful were the affirmation and relaxation phases. One respondent found the affirmation "extremely helpful." One respondent felt that the troubleshooting session was useless, but the overall response to this was positive.

When we asked if the athletes would recommend the program to another coach or athlete, eight participants responded positively. Comments included the assertion that the athlete must wholeheartedly believe in the method of it to work. Another felt that "even with limited involvement the method works." Five felt the program would be beneficial to sports other than swimming, cross-country and baseball specifically. Other comments included feelings of being rushed throughout the whole process, with which we fully agree. The program should be initiated during the first weeks of the season. Another respondent had difficulty with every aspect of the program and didn't feel it was especially helpful other than making him slightly more relaxed.

Overall, the responses to the program were positive. Very few respondents did not agree that the methods helped to some extent. The comments and open responses were positive and helpful. The comments expressing problems with the athlete or the program were enlightening and were taken into consideration when recommending changes for future use of the program.

(3) The swimmers in the case study above found it difficult to practice the relaxation during the actual swim meet. The four relaxation methods discussed in our text takes hours and weeks to master. How then could any of these methods be utilized by an athlete who must be able to bring on the relaxation response in a matter of minutes or even seconds? Be sure to support your opinion with research in the field.

Suppose that the average household in a state consumes 1000 gallons of gasoline per year. A 20-cent gasoline tax is introduced, coupled with a $160 annual tax rebate per household. Will the household be better or worse off under the new program? Graphically show how you arrived at your answer

Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended

31 March 2018, the following information has been collected for this purpose.

Additional information:

Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities.

Plant and equipment, with a fair value of $100 000, has been acquired by the issue of

$100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment.

During the year, equipment that originally cost $100 000 was sold for $30 000 cash.

Plant and equipment was revalued upwards by $30 000.

A long-term loan of $30 000 was specifically organised for the purchase of plant and equipment costing $30 000.  

Required:

(iii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the directmethod for the cash flows from operating activities (CFOA) section. Complete the necessary reconciliation, as required by NZ FRS-44, to be included in the notes.

CFOA = cash flows from operating activities, CFIA = cash flows from investing activities and CFFA = cash flows from financing activities.        

The twenty-year bond yields 6.1% and has a coupon of 8.1%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price            $

b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Total return             %

Armand Company projects the following sales for the first three months of the year: $10,600 in January; $12,300 in February; and $12,900 in March The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. 1. Prepare a schedule of cash receipts for Armand for January, February, and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? Solution: Requirement 1 Schedule of Cash Receipts from Customers January February March Total Total Sales $10,600 $12,300 $12,900 $35,800 Cash Receipts from Customers Accounts Receivable Balance, January 1 $0 1st Qtr. - Cash sales (60%) 6,360 1st Qtr. - Collected for sales on credit (20%) 2,120 2nd Qtr. - Collection of remaining amount of Jan. sales (20%) $2,120 2nd Qtr. - Cash sales (60%) 7,380 2nd Qtr. - Collected for sales on credit (20%) 2,460 3rd Qtr. - Collection of remaining amount of Feb. sales (20%) $2,460 3rd Qtr. - Cash sales (60%) 7,740 3rd Qtr. - Collected for sales on credit (20%) 2,580 Total cash receipts from customers $8,480 $11,960 $12,780 $33,220 Calculate and show below the Accounts Receivable Balance as of March 31 Requirement 2 Revised Schedule of Cash Receipts from Customers January February March Total Accounts Receivable balance, March 31: Amount February - Credit sales (finish this . . . .

4. Calculate the payments and amortization table of a 3-year car loan for $12,000 at a 6% rate of interest. The loan will be repaid with three annual payments.

A 20-year loan of 150,000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of 9,000 will apply during the first ten years and a higher level payment will apply during the remaining ten years. Each time the lender receives a payment from the borrower, he will deposit the portion representing the principal into a sinking fund with an annual effective interest rate of 4%. (Assume that the interest portion remains level throughout these 20 years and assume that all but the interest portion is deposited into the sinking fund.) This scheme will replace the lender’s capital.

What is the higher payment (rounded to the nearest dollar) that applies during the years 11-20?


A. 16,982  
B. 13,306  
C. 16,426  
D. The answer is not listed here

E. 13,900

Find the lender’s yield on this investment.


A. . 0479  
B. .0384  
C. .0784  
D. .0704  
E. The answer is not listed here

Mary takes a loan for 5 years to be repaid by level end of year payments of R. The interest paid in the third payment was 136.16 and the interest paid in the 5 th payment was 47.62. Please find the amount of principal paid in the fourth payment P4.

On January 1, the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x ½), receiving cash of $1,512,610. Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS- General Ledger

ASSETS- 110 Cash, 111 Petty Cash, 121 Accounts Receivable, 122 Allowance for Doubtful Accounts, 126 Interest Receivable, 127 Notes Receivable, 131 Merchandise Inventory, 141 Office Supplies, 191 Land, 194 Office Equipment, 195 Accumulated Depreciation-Office Equipment

LIABILITIES- 210 Accounts Payable, 221 Salaries Payable, 231 Sales Tax Payable, 232 Interest Payable ,241 Notes Payable,251 Bonds Payable, 252 Discount on Bonds Payable, 253 Premium on Bonds Payable

EQUITY- 311 Common Stock, 312 Paid-In Capital in Excess of Par-Common Stock, 315 Treasury Stock, 321 Preferred Stock, 322 Paid-In Capital in Excess of Par-Preferred Stock, 331 Paid-In Capital from Sale of Treasury Stock, 340 Retained Earnings, 351 Cash Dividends, 352 Stock Dividends, 390 Income Summary

REVENUE- 410 Sales, 610 Interest Revenue, 611 Gain on Redemption of Bonds

EXPENSES- 510 Cost of Merchandise Sold, 515 Credit Card Expense, 516 Cash Short and Over, 522 Office Salaries Expense, 531 Advertising Expense, 532 Delivery Expense, 533 Repairs Expense, 535 Rent Expense, 536 Insurance Expense, 537 Office Supplies Expense, 541 Bad Debt Expense, 562 Depreciation Expense-Office Equipment, 590 Miscellaneous Expense, 710 Interest Expense, 711 Loss on Redemption of Bonds