Kapil set out to tour Singapore in January 2024. He had set aside NR 300,000 for his tour. On January 16, 2024, he went to Baluwatar and exchanged NR…
BBS Fundamentals of Corporate Finance · 2080 · Solved Question with Answer
Kapil set out to tour Singapore in January 2024. He had set aside NR 300,000 for his tour. On January 16, 2024, he went to Baluwatar and exchanged NR 300,000 for SGD. On that very day, Nepal Rastra Bank's Bid rate for one unit of SGD was NR 69.13 and its Ask rate was NR 69.61 for one unit of SGD. Unluckily he had to cancel his trip to Singapore on January 22 for next couple of months. So, he again exchanged SGD for NR at the same rate quoted on January 16.
a. How much SGD did he receive after exchanging NR 300,000 on January 16.
b. How much NR did he receive on January 22 after selling the SGD?
c. What is his gain or loss in buying and selling of SGD?
d. What percent did he gain or lose his money?e. What is the Bid/Ask percentage spread?