FIN3703
Assignment 1 Semester 2 2026
Unique number
Due date: 31 August 2026
SECTION A
Question 1
Treasury management is executed in any business, irrespective of its size, structure,
or industry. Which activities do not fall directly under the corporate treasury
management functions in business?
Answer: 3 — b and c
The corporate treasury function is primarily concerned with cash, liquidity, banking
relations and cash forecasting (LU 1, Section 1.6.2). The management of the cost of
capital and capital structure is generally a broader strategic finance function, while
operational and strategic risk management is normally part of the wider risk
management function. Therefore, options b and c do not directly form part of the
, SECTION A
Question 1
Treasury management is executed in any business, irrespective of its size, structure,
or industry. Which activities do not fall directly under the corporate treasury
management functions in business?
Answer: 3 — b and c
The corporate treasury function is primarily concerned with cash, liquidity, banking
relations and cash forecasting (LU 1, Section 1.6.2). The management of the cost of
capital and capital structure is generally a broader strategic finance function, while
operational and strategic risk management is normally part of the wider risk
management function. Therefore, options b and c do not directly form part of the
core treasury functions.
Question 2
Answer: 1 (a)
An interest rate swap is a contract between two parties to exchange interest-rate
cash flows. A common plain-vanilla swap allows one party to exchange a floating-
rate commitment for a fixed-rate commitment, or the reverse, to manage interest-rate
exposure (LU 5, Section 5.7.1; Bragg, 2010, p. 246).
Question 3
Answer: R2,780.82
The interest payable is calculated using simple interest for the specified period (LU
4, Section 4.7.2).
Assignment 1 Semester 2 2026
Unique number
Due date: 31 August 2026
SECTION A
Question 1
Treasury management is executed in any business, irrespective of its size, structure,
or industry. Which activities do not fall directly under the corporate treasury
management functions in business?
Answer: 3 — b and c
The corporate treasury function is primarily concerned with cash, liquidity, banking
relations and cash forecasting (LU 1, Section 1.6.2). The management of the cost of
capital and capital structure is generally a broader strategic finance function, while
operational and strategic risk management is normally part of the wider risk
management function. Therefore, options b and c do not directly form part of the
, SECTION A
Question 1
Treasury management is executed in any business, irrespective of its size, structure,
or industry. Which activities do not fall directly under the corporate treasury
management functions in business?
Answer: 3 — b and c
The corporate treasury function is primarily concerned with cash, liquidity, banking
relations and cash forecasting (LU 1, Section 1.6.2). The management of the cost of
capital and capital structure is generally a broader strategic finance function, while
operational and strategic risk management is normally part of the wider risk
management function. Therefore, options b and c do not directly form part of the
core treasury functions.
Question 2
Answer: 1 (a)
An interest rate swap is a contract between two parties to exchange interest-rate
cash flows. A common plain-vanilla swap allows one party to exchange a floating-
rate commitment for a fixed-rate commitment, or the reverse, to manage interest-rate
exposure (LU 5, Section 5.7.1; Bragg, 2010, p. 246).
Question 3
Answer: R2,780.82
The interest payable is calculated using simple interest for the specified period (LU
4, Section 4.7.2).
