User Account

All Pages

What is the payment on the swap at this settlement date

Assignment Help Accounting Basics
Reference no: EM132521008

Question - A company and a bank enter into an interest rate swap agreement. The company, which has just borrowed $10 million for five years at the BBSW benchmark rate plus 2% (interest payable every six months), undertakes to pay a fixed rate of interest at 6% every six months on notional principal of $10 million in return for payments from the swap bank at the BBSW. The swap is for five years. At one settlement date, the BBSW is 6.8%. What is the payment on the swap at this settlement date?

Reference no: EM132521008

Questions Cloud

Business source ultimate database : Moving beyond the critical synthesis: Does the law preclude a future for US unions? What are the author's main points?
About the professionalism : You had lunch with your supervisor on two separate occasions in which she shared some personal issues with you she is facing.
How much will Hugh have to repay on July : This amount plus accrued interest at 10% compounded annually is to be repaid on July 1, 2022. How much will Hugh have to repay on July 1, 2022
Intercultural sensitivity : Tell us about a time you needed to use sensitivity when dealing with a culturally diverse situation. What did you learn about diversity from this example?
What is the payment on the swap at this settlement date : The swap is for five years. At one settlement date, the BBSW is 6.8%. What is the payment on the swap at this settlement date
Developing data collection instruments : Developing data collection instruments can take practice. The type of instruments range from focus groups to questionnaires.
Global strategy and management : Several management scholars have argued that charisma is not enough for someone to be a leader.
Explain how to account for a contingent liability : Explain how to account for a contingent liability. Explain why establishing an allowance for bad debts satisfies the matching principle
Developing and implementing ethical policies and practices : Discusses a framework for developing and implementing ethical policies and practices.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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