Reference no: EM131325561
You are a funds manager for a large bank. On April 15, your bank lends a corporation $35 million, with interest payments to be made on July 16, October 15, January 16, and next April 16. The amount of interest will be determined by LIBOR at the beginning of the interest payment period. On April 15, LIBOR is 8.0 percent.
Your forecast is for declining interest rates, so you anticipate lower loan interest revenues. You decide to buy an interest rate floor with a strike set at 8 percent and a premium of $60,000.
Determine the cash flows associated with the loan if LIBOR turns out to be 7.9 percent on July 16, 7.7 percent on October 15, and 8.1 percent next January 16.
The payoff is based on the exact number of days and a 360-day year.
If you have a financial calculator or spreadsheet with an IRR function, determine the internal rate of return and annualize it to determine your annualized return on the loan.
|
Describe the scope of the project and control measures
: This assignment consists of three (3) sections: a written project plan, a revised Gantt chart or project plan, and a project plan PowerPoint presentation. You must submit the three (3) sections as separate files for the completion of this assignme..
|
|
Necessary to have more or less hemoglobin
: In high altitudes is it necessary to have more or less hemoglobin? Why is carbon monoxide toxic for humans? How is heart contraction triggered?
|
|
Research to find a targeted recruiting strategy
: Conduct independent research to find a targeted recruiting strategy. Discuss each question separately. Include the 5 HEADINGS (in-bold) below in your response: Describe the strategy
|
|
What are the implications for small business owners
: What are the implications for small business owners? How can a small business owner collect data on customer satisfaction that can be used to improve operations without the enormous costs of traditonal systems we see in place today?
|
|
Determine the internal rate of return and annualize it
: If you have a financial calculator or spreadsheet with an IRR function, determine the internal rate of return and annualize it to determine your annualized return on the loan.
|
|
Groups of defense mechanism of the body
: What are the two groups of defense mechanism of the body against foreign or harmful agents? What is the difference between them? How can the immune memory lead to the efficacy of vaccines and also produce allergies?
|
|
Pluricellular organism to present a large intestinal surface
: After digestion the next step is absorption done by cells of the mucous membrane of the intestine. For this task a large absorption surface is an advantage. How is it possible in the small internal space of the body of a pluricellular organism to ..
|
|
Does the author provide any postive examples of aging
: Does the author provide any postive examples of aging? in teh novel, how do youth and naivete take a back seat to knowledge and experience?
|
|
Determine the firms cash flows on the loan
: Determine the firm's cash flows on the loan if LIBOR turns out to be 11.35 percent on April 16, 10.2 percent on July 15, and 8.86 percent on October 14.
|