1 a. (i) The development of euromarkets depended on many factors. Outline four (4) of those factors. [2 marks] (ii) Why has the euromarket continued to expand even though the original causes of its...

need answer for 4 question please


1 a. (i) The development of euromarkets depended on many factors. Outline four (4) of those factors. [2 marks] (ii) Why has the euromarket continued to expand even though the original causes of its development have ceased to exist? Provide two (2) reasons. [1 mark]   b. (i) Describe the differences between foreign bonds and Eurobonds. [2 marks] (ii) Explain why Eurobonds make up the lion’s share of the international bond market. [2 marks] 2 a. Discuss two factors that influence the yield at which a commercial bill will be discounted. What effect does a bank-accepted have on the yield? [2 marks] b. The proprietor of Kent Street Toyota, a car dealership, has applied to GE Finance Ltd for a “floor plan finance”.     (i) Explain the purpose and operation of floor plan financing. [2 marks]     (ii) GE Finance can enforce a range of systems, including bailment, to protect its                                       position as the provider of floor plan finance. Explain bailment.  [3 marks] 3 a. Zara Ltd, expects interest rates to increase.  Rather than take a position in the bond market, Zara Ltd decides to use interest rate swaps to carry out the trade. Outline the position that Zara Ltd, with these expectations, should take in the interest rate swaps market. [2 marks] b. Describe the main features of a cross-currency swap. Include in your answer a discussion of the differences between an interest rate swap and a cross-currency swap. [2 marks] c. The following table shows the borrowing capability of Firm X and Firm Y.                         Borrower   Fixed Rate of Interest Per Annum   Variable Rate of Interest per Annum                                  X                                  7.30%                                       BBSW + 0.55%                                  Y                                  9.90%                                       BBSW + 1.95% i) State whether a profitable swap may be arranged. In your answer, calculate comparative advantages and show the net borrowing differential that may be gained and shared between Firm X and Firm Y. [2 marks] ii) If the two firms wish to proceed with the interest rate swap, explain how the existence of the comparative net differential may be beneficial to both firms if they share the net borrowing differential equally. [1 mark] 4 a. Meriton Ltd is seeking a fully amortised commercial mortgage loan of $950,000 from Westpac Banking Corporation. The conditions attached to the loan include an interest rate of 8% per annum, payable over eight years by equal end-of-quarter instalments. Meriton’s chief financial officer (CFO) needs to ascertain the quarterly instalment amount. Advise the CFO the amount of the quarterly  instalment. [3 marks] b. Meriton Ltd is purchasing a medium crane for the business at a cost of $31,500. AGC Finance Ltd has offered a term loan over eight years at a rate of 12% per annum. The loan will be repaid by equal monthly instalments with the first repayment made on the day the loan proceeds are paid to Meriton Ltd. (i)  What type of annuity payment is this? [0.5 mark] (ii) Calculate the amount of each loan instalment. [3.5 marks]