Calculate interest on eurodollar loan

Assignment Help Macroeconomics

Reference no: EM1371093

A United State corporation CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2% over the 1st 6M interval and 5 3/8% over the 2nd 6M interval, how much will CTM pay in interest over the 1st year of its Eurodollar loan?

Reference no: EM1371093

Questions Cloud

Explain the economics of the concentrate business : Explain the economics of the concentrate business to that of the bottling business and Why is the profitability so different and How has the competition between Coke and Pepsi affected the industry profits?

Illustrate what will level of consumption and trade balance : If country desires to smooth consumption, explain how much it should borrow in period 0. Illustrate what will level of consumption and trade balance is from then on.

At what angle is the net force : A flea pulls on a puck with force 7 microN at an angle of 30?. Another flea pulls on the puck with force 2 microN at an angle of -60?.

What you need to know about financial management : Use both the TLC and WLC estimation methods to create what you estimate to be the microcosts in the evaluation of the supplier proposal.

Calculate interest on eurodollar loan : A United State corporation CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2%

What is the charge on sphere : The brakes are applied to a car traveling on a dry, level highway. A typical value for the magnitude of the car's acceleration is 5.45 m/s2. If the car's initial speed is 33 m/s, how long does it takes to stop and how far does it travel, starting ..

American living standards - do we have enough : American Living standards - Do we have enough? Should we try to produce more?

Illustrate what do you think disrupted mcdonald plans : Within two weeks sales had fallen. Using your knowledge of game theory, illustrate what do you think disrupted McDonald's plans.

Explain-analyze algorithm to determine cyclic rotation : Explain and analyze the algorithm which determines whether one string P[1 ..m] is cyclic rotation of another string T[1 .. n].

User Account

All Pages