User Account

All Pages

Party receiving a fixed rate of interest

Assignment Help Business Management
Reference no: EM131195896

A semi-annual pay interest rate swap where the fixed rate is 5.00% (with semi-annual compounding) has a remaining life of nine months. The six-month LIBOR rate observed three months ago was 4.85% with semi-annual compounding. Today's three and nine month LIBOR rates are 5.3% and 5.8% (continuously compounded) respectively. From this it can be calculated that the forward LIBOR rate for the period between three- and nine-months is 6.14% with semi-annual compounding. If the swap has a principal value of $15,000,000, what is the value of the swap to the party receiving a fixed rate of interest?

A) $74,250

B) -$70,760

C) -$11,250

D) $103,790

Reference no: EM131195896

Questions Cloud

Determining the firm break-even : What is the incremental profit? To get a rough idea of the project's profitability, what is the project's expected rate of return for the next year (defined as the incremental profit divided by the investment)? Should the firm make the investment?..
What is the opportunity cost of options a and b : If you sell the house (options A and B), you will have to pay realtor's fees and taxes, which amount to 8% of the selling price. What is the opportunity cost of options A and B?
Define the main components of the issue highlighting : Select a current political event that has the possibility of resulting in sociological change. Define the main components of the issue highlighting the specific cultural change initiatives that are under consideration. In your discussion, take car..
Do research to document the status of this lawsuit : Do research to document the status of this lawsuit.
Party receiving a fixed rate of interest : From this it can be calculated that the forward LIBOR rate for the period between three- and nine-months is 6.14% with semi-annual compounding. If the swap has a principal value of $15,000,000, what is the value of the swap to the party receiving ..
Do these benefits outweigh the loss of your privacy : What benefits can consumer profiling provide to you as a consumer? Do these benefits outweigh the loss of your privacy?
How is motion involved in this formation : How is motion involved in this formation? Include a description of other bodies directly involved with their formation (such as asteroids, comets, and other planets).
Write the journal entries to record transaction : Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified - Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $4,200.
Organisation margin of safety : At what level of price for the new product will the organisation break even? If the actual planned selling price is £48 per unit, what wil be the organisation's margin of safety?

Reviews

Write a Review

Business Management Questions & Answers

  Risk management for southwest airlines to protect from

risk management for southwest airlines to protect from fluctuating fuel costs hedging strategies forward contractsyou

  Construct a simple blueprint for one service process

Construct a simple blueprint for one service process in your organisation. Identify and discuss the critical points within the service delivery process that are likely to have a significant bearing on the customer's experience.

  Specific detail of starbuck roastery reserve

Describe specific detail of Starbuck Roastery Reserve in Seattle (not regular starbuck).

  Implemented in order to change quality issues

For this project select some type of real world quality failure.  You may use a current job situation, or find a quality score or review that states the problem.  Restaurant or travel reviews can be found at www.tripadvisor.com , yelp, etc.  or ma..

  Examine the benefits and costs of fdi to the home

Examine the benefits and costs of FDI to the home and host countries. Express the MNE's future. You are to use at least three references apart from the textbook and comprise a reference page listing your sources.

  Technicalities of reliability and validity in applied market

One need not be concerned with the technicalities of reliability also validity in applied marketing research. Main thing is which research corroborates future results.

  Research the acsi therefore that you become expert

Research the ACSI therefore that you become expert on its advantages as well as so that you gain a complete understanding of the model on which it is based.

  Company just acquired a small mining firm

Your company has just acquired a small mining firm. Despite the due diligence procedure, you were not aware that the miner had some coal seam gas leases in the mid-west of NSW.

  Npv of the lease relative to the purchase

a. What is the NPV of the lease relative to the purchase? b. What would the after-tax cash flow in year three be if the asset had a residual value of $1,000 (ignoring any possible risk differences)?

  Describe castleberry major operations responsibilities

1. Describe Castleberry's major operations responsibilities. How well is he carrying out each of these responsibilities? 2. What kind of planning activities should Castleberry be carrying out regularly? What planning areas need immediate attention?

  Complete a thorough analysis and provide an opinion regardin

Organizational Design: Identify two medium to large-sized cities' law enforcement agencies within the United States. Write a three to five page paper comparing two organizational design structures relating to the law enforcement organizations. Comple..

  What are the strengths and weaknesses of each approach

Identify two articles in the Library: one in which the business problem is researched using a qualitative design and the other using a quantitative design.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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