Calculate the amounts received by a and b

Assignment Help Basic Statistics
Reference no: EM132951563

Two counterparties, A and B, agreed on a five-year interest rate swap, whereby A received annual payments based on a floating interest rate and B received annual payments based on a fixed interest rate. The notional principal is AUD100,000 and the fixed rate is 6 per cent. The floating interest rate assumed the following values on the payment dates:

Payment date Interest rate

2016 8.25
2017 9.75
2018 5.50
2019 4.75
2020 6.00

Calculate the amounts received by A and B on each payment date.

 

 

Reference no: EM132951563

Questions Cloud

Cover interest arbitrage : You work as a trader for ANZ Bank, you see the following price from two different bank:
Calculate the gross pay-off at the spot exchange rates : A trader holds a call option and put option on the New Zealand dollar. The Call gives the trader the right to 1 million NZD at an exercise exchange rate of 0.70
Question on reinvestment rate : Why is it true that a reinvestment rate is implicitly assumed whenever we find the present value of a future cash flow? Would it be possible to find the PV of a
Explain the purchase requisition process to jock : Explain the purchase requisition process to Jock. What information needs to be included in each purchase requisition? Why is each important?
Calculate the amounts received by a and b : Two counterparties, A and B, agreed on a five-year interest rate swap, whereby A received annual payments based on a floating interest rate and B received annua
Difference between the mirr and the regular irr : What's the primary difference between the MIRR and the regular IRR?
What differences do you see in the two papers : Compare the two papers you have selected. What are the common themes? Do any of the results overlap
What the depreciation expense for the year ending june be : The machine was six months old at June 30 and had been used for 3,800 hours. The depreciation expense for the year ending June 30 would be
What are the maximum annual year-end lease payments : A manufacturer offers a $30,000 computer network system under either a financial lease or an operating lease. The system is expected to have a useful life of 6

Reviews

Write a Review

Basic Statistics Questions & Answers

  Comparing the distributions of cardiovascular fitness gains

The manufacturer of exercise machines for fitness centers has designed two new elliptical machines that are meant to increase cardiovascular fitness.

  A decision maker is interested in estimating a population

a decision maker is interested in estimating a population proportion. a sample of size n 150 yields 115 successes.

  Standard error of the mean difference scores similar

How are the standard error of the difference between two means and the standard error of the mean difference scores similar?

  What is the probability that at least 1 is defective

One shelf in the store contains 75 ink cartridges for a printer. Seven of the cartridges are defective. A person selects 2 of these cartridges at random from th

  What is the probability of all selected students are female

My statistic class has 8 students 6 of them are female. In the experiment, I randomly select 4 students (without being replacement) to make a group presentation to the class. What is the probability of the following cases: What is the probability ..

  A singapore edition of business times

In a Singapore Edition of Business Times, diamond pricing we explored. The price of a diamond is based on the diamond's weight, color, and clarity. A Simple random sample of 18 one-half-carat diamonds had the following prices, in dollar's

  Testing hypothesis of annual incomes of corporate trainers

Test hypothesis that annual incomes of corporate trainers in areas of more than 500,000 are considerably more than those in areas of less than 100,000.  Make use of the 5% level of risk.

  The number of customers arriving at the checkout counter in

the number of customers arriving at the checkout counter in a department store during a one hour period is a poisson

  Record the six individual measurements separately

Record the six individual measurements separately for each sample in a table. They will be used for subsequent problems.

  Wat is the numeric value of k if the pmf is given as px

what is the numeric value of k if the pmf is given as px k2 for x

  Stat some formulas which will help in my exam to write and

some formulas which will help in my exam to write and i want its answer also with nice answers .i want the best

  Test of hypothesis-z statistic and p-value

A manufacturer claims that the mean lifetime, mean, of its light bulbs is 52 months. The standard deviation of these lifetimes is 7 months. Ninety bulbs are selected at random, and their mean lifetime is found to be 55 months.

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!

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