Calculate the upfront fee on a cds on company xyz

Assignment Help Corporate Finance
Reference no: EM131056128

1. Calculate the upfront fee on a CDS on Company XYZ with 4 years remaining and a par CDS rate of 300 bps and coupon of 100 bps. Please use a discount rate of .25 per year.

2. Over the course of the year, the credit of the XYZ CDS deteriorates to a par CDS rate of 500 bps. Calculate the P&L of the position from the perspective of CDS buyer.

3. Calculate the upfront fee on a CDS on Company ABC with 4 years remaining and a par CDS rate of 300 bps and coupon of 500 bps. Please use a discount rate of .25 per year.

4. Over the course of the year, the credit of the ABC CDS deteriorates to a par CDS rate of 500 bps. Calculate the P&L of the position from the perspective of CDS buyer.

Reference no: EM131056128

Questions Cloud

What is the ph of the buffer solution : A buffer solution is made using 1.0 M NH3 and 0.75 M NH4Cl. A. What is the pH of the buffer solution?
Reduce the negative consequences of rumors : Some studies indicate the best approach for transformational change may have the chief executive officer create an atmosphere for change
Explain market forces that will impact the financial plan : Explain two economic and market forces that will impact the financial plan of this company. Create an outline for the essay.
Relationship between the volume of a gas and its pressure : 1.) What conclusions can you make about the relationship between the volume of a gas and its pressure?
Calculate the upfront fee on a cds on company xyz : Calculate the upfront fee on a CDS on Company XYZ with 4 years remaining and a par CDS rate of 300 bps and coupon of 100 bps. Please use a discount rate of .25 per year.
How much heat was added to the gas : With the pressure held constant at 210 kPa, 49 mol of a monatomic ideal gas expands from an initial volume of to a final volume of (a) How much work was done by the gas during the expansion? (b) What were the initial and final temperatures of the ..
Would you accept that the population was normal : If you randomly sampled a population and obtained ten observations with a mean of zero, would you accept that the population was normal with μ = 2.0 and σ2= 2.0? Why, or why not
Monatomic ideal gas : (a) Find the work done by a monatomic ideal gas as it expands from point A to point C along the path shown in Figure 4. (b) If the temperature of the gas is 220 K at point A, what is its temperature at point C?
Calculate the temperature at the points : Suppose 57.5 moles of an ideal monatomic gas undergo the series of processes shown in Figure 5. (a) Calculate the temperature at the points A, B, and C. (b) For each process and state whether heat enters or leaves the system. Explain in each case...

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd