Short answer computation problems. Show all work to receive full credit. (a) Camila buys a boat for $30,000 paying a deposit of $5,000. The rest of the amount is borrowed from DBS Bank Limited to be repaid in 15 monthly instalments of $2027.50 each. What is the monthly interest rate being charged? (b) A recently issued Commonwealth bond has a face value of $1000, matures in 5 years and pays interest twice a year. The current market yield of similar government securities is 10% per annum. If the current price of the bond is $1077.22, what is the coupon rate? (c) According to the simple interest formula, the annualised overnight repo rate is 3.75%. What is the real annual rate of return for entering into an overnight lending program every day? (d) Police Bank Limited accepted Smart Energys 90-day bills with a face value of $50 million and charged an acceptance fee of 120 basis points. Given that the bills were issued at 5%, calculate the borrowers proceeds. (e) Fortesque Limited receives the following indirect quotes from Saxo Bank for AUD/USD. Bid Ask Spot 0.63601 0.63610 One-month forward 0.63671 0.63680 Three-month forward 0.63821 0.63831 Six-month forward 0.64005 0.64018 What would it cost you in AUD to purchase USD 2 million forward six months? Question 6 True/False Questions (20 marks)