Categorize payments to foreign officials as investment

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1. Two months from today you plan to borrow $3 million for 3 months at LIBOR. You hedge your interest rate risk with a euro dollar futures contract priced at 93.6. If settled in arrears, what is your payment if the 3-month LIBOR rate is 2.5% (not annualized) in two months?

2 .What is the value of a 15 year zero coupon bond, if the required return for the bond is 7%?

3. In what ways does the theory of finance categorize payments to foreign officials as an investment?

Reference no: EM131919762

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