= $ 86,400
4.) The Bond issued at a contractual interest rate less than the market interest rate is
DISCOUNT.
5.) The Bond issued at a contractual interest rate greater than the market interest rate is
PREMIUM.
6.) The Bond issued at a contractual interest rate equal than the market interest rate is PAR
VALUE.
7.)
DATE SALES TRANSACTION FORWARD CONTRACT
December 1, 2018
February 1, 2019
8.)
USD EQUIVALENT
US $ CURRENCY PER EQUIVALENT OF OF 6,000 UNITS OF
CURRENCY
EQUIVALENT USD $4,000 FOREIGN
CURRENCY
JPY (YEN) .01173 85.2350 340,940 $70.39
EUR (EURO) 1.3517 .73981 2959.24 $8,110.19
CAD
1.0129 .98726 3949.04 $6,077.43
(CANADIAN $)
GBP (BRITISH
1.60565 .62280 2491.20 $ 9,633.91
POUND)
CHF (SWISS
1.0324 .96861 3874.44 $ 6,194. 44
FRANC)
CNY (YUAN) .15115 6.61594 26463.76 $ 906. 90
INR (INDIAN
.02205 45.35148 181, 405.90 $ 132.30
RUPEE)
9.) How many Yens does the Japanese retailer need to cover the payment?
10.) How many British Pounds will it need to make the investment?