User Account

All Pages

Classic interest swap between two companies

Assignment Help Business Economics
Reference no: EM131597048

Citibank is arranging a classic interest swap between two companies: Alpha Inc. & Beta Corp. Alpha can borrow floating rate at LIBOR+0.6% or fixed rate at 7.6%. Beta can borrow floating at LIBOR +1.1% or fixed rate at 9.1%. Alpha wants to pay a floating rate and Beta wants to pay a fixed rate. If Citibank takes 12 bps, how much savings is available to be divided between the two companies?

Reference no: EM131597048

Questions Cloud

Hotshot consultants advises : Suppose the current price of gold is $1,200 an ounce. Hotshot Consultants advises you that gold prices will increase at an average rate of 12% for the next.
How would your answer change if right now is time? 6 : a. Which? stock(s) would you be inclined to? sell? Which would you be inclined to hold? onto? b. How would your answer change if right now is time? 6?
Describe the situation in terms of the family life cycle : Describe the situation in terms of the family life cycle and any issues of resistance that might develop.
What does the phrase culturally responsive teaching mean : What does the phrase "culturally responsive teaching" mean to you? How does the use of a culturally responsive pedagogy impact student achievement?
Classic interest swap between two companies : Citibank is arranging a classic interest swap between two companies: Alpha Inc. & Beta Corp.
The situation in terms of bowen family systems theory : Describe the situation in terms of Bowen family systems theory. What additional questions would you like to ask the family and why??
Define succession planning and its importance : Primary Task Response: Within the Discussion Board area, write 500-700 words that respond to the following questions with your thoughts, ideas, and comments.
Estimating the wacc should a company avoid : What four common mistakes in estimating the WACC should a company avoid?
Construct a genogram of your own family : Construct a genogram of your own family. Use the information in the Readings to assist you.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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