- 20 Marks
TMFS – APRIL 2023 – L2 – Q5 – Interest Rate Swaps, Leasing, Policy Targets, Redemption Yield
Explain use of interest rate swaps for exchange rate risk, reasons for leasing popularity, define intermediate policy targets, and define redemption yield.
Question
a) Explain how a company may use interest rate swap as a means of managing exchange rate risk. [9 Marks]
b) List four reasons why leasing serves as a popular source of finance for the corporate sector. [4 Marks]
c) List and define each of the intermediate target variables of economic policy. [5 Marks] d) What is redemption yield? [2 Marks] [Total Marks: 20]
Find Related Questions by Tags, levels, etc.
- Tags: Exchange rate risk, Interest Rate Swap, Intermediate Targets, Leasing, Redemption Yield
- Level: Level 2
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