Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Which of the following statement about swaps is least accurate?
A. In a plain vanilla interest rate swap, the notional principal is swapped.
B. The default problem [i.e. default risk] is the most important limitation to the swap market.
C. In a plain vanilla interest rate swap, fixed rates are traded for variable rates.
2. A limitation of interest rate swaps is that there is a risk to each swap participant that the counterparticipant could default on his payments.
A. True
B. False
3. In order to help fund a loan request of $30 million for one year from one of its best customers, Derby Bank will borrow $15 million by selling CDs at a promised annual yield of 3.75 percent and also borrow $15 million in the Federal funds market at today’s prevailing interest rate of 3.50 percent. Credit investigation and recordkeeping costs to process this loan application were an estimated $60,000. The Credit Analysis Division recommends a minimal 1 percent risk premium on this loan and a minimal profit margin of 0.5 percent. Using the cost-plus loan pricing model, what loan rate should be charged?
A. 5.45%
B. 8.95%
C. 7.25%
D. 5.325%
E. 5.20%
What is the interest rate on a 1-year $10,000 loan that you plan to take out at the end of year 3? Assume continuous compounding.
Earl obtained a loan for 15000 dollars. He will pay it back in 19 months with an interest rate of 14 yearly compounded monthly. Each payment will be $400 larger than the previous payment. Calculate the amount of the last payment.
A medical lab wants to upgrade its MRI machine. How much can the lab afford to pay for the MRI machine?
Holdup Bank has an issue of preferred stock with a $5 stated dividend that just sold for $89 per share. What is the bank's cost of preferred stock?
how much should you deposit annually if you can earn 7% annual return? Assume you deposit the money at the end of each year.
Calculate the annual growth rate. Use formulars only to calculate those parameters. What was the annual growth rate?
Ratio Analysis Objectives - Recognize the purpose of ratio analysis with internal and external users and nament and name the limitations of ratio analysis. Identify 1 specific ratio and list how it might be used internally. List a limitation for inte..
The risk-free rate is 4.8%, the market risk premium is 8%, and the stock's beta is 0.68. What is the required rate of return on the stock, E(Ri)?
One of these firms is a diversified conglomerate, and the other two operated only in one or two lines of business. Which is the conglomerate and why?
The Leveraged Corporation has an 8-year bond outstanding with a coupon rate of 12 percent and a price of $942.5. If the bond pays its coupons semi-annually and the firm’s marginal tax rate is 40%, its after-tax cost of debt is
The firm can borrow in U.S. at 10% compounded annually or the firm can borrow in Euros from a German bank, the spot rate is $ 1.10 per Euro and the one-year forward rate is $ 1.20 per Euro. Both loans require repayment of the principal and interest a..
Assume the company accounts for flotation costs by adjusting the cost of capital.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd