Calculate the value of the above forward contract

Assignment Help Finance Basics
Reference no: EM132685914

XYZ is a BBB rated company with a credit spread of 1.50%. It expects interest rate will increase in future. Today, it wants to lock in the 3-month interest rate between next December and March. Currently, next December Eurodollar futures price is 97.54 and March Eurodollar futures price is 97.55.

Calculate the value of the above forward contract.

Reference no: EM132685914

Questions Cloud

What might be better measure for central tendency : What might be the better measure for central tendency? What sort of research question would this variable help answer that might inform social change?
Record the closure of revenue and expense accounts : Record the closure of revenue and expense accounts. Record the operating loss for the year. Record the transfer of depreciation expense to the asset account.
What is the companys ratio : A company has 100,000 in cash 300,000 in accounts receivable 50,000 in inventory and a 300,000 office building its current liabilities are 250,000
Creating detailed management plan : A logic model is a tool to assist in creating a detailed management plan and framework to address a public health issue.
Calculate the value of the above forward contract : XYZ is a BBB rated company with a credit spread of 1.50%. It expects interest rate will increase in future. Today, it wants to lock in the 3-month interest
Identify age-spiritual values and cultural variables : Identify age, spiritual values, and cultural variables that were considered and how these variables influenced your interviews or health history.
What is the intrinsic value of windsor widgets stock : Given this information, what is the intrinsic value of Windsor Widgets stock?
Draw a graph showing the curve : Give an explanation of the following questions:When an investor earns an effective annual return
What is the intrinsic value of santa rosa roses stock : The local financial analyst for Barney Smith estimates that the cost of equity for Santa Rosa is 15%. Given this information, what is the intrinsic value of San

Reviews

Write a Review

Finance Basics Questions & Answers

  Arithmetic return for the stock

What is the arithmetic return for the stock? What is the geometric return for the stock?

  What is the ytm if the coupons are paid semi-annual

You are considering the purchase of a coupon bond with a face value of $1,000, which matures in 18 years, and pays 4.75% (annual) coupons.

  Calculate the future stock price

The Canning Company has been hit hard by increased competition. Analysts predict that earnings and dividends will decline at a rate of 5 percent yearly into the forseeable future.

  Develop computer program that can maintain current status

Develop a computer program that can be used to maintain the current status of all active contracts of a construction rum.

  What should the landlord proposed starting rent be

A landlord has offered a tenant a five-year lease with annual net rental payments of $20/SF in arrears. The appropriate discount rate is 10%.

  What is the net present value of the cash flows

What is the net present value (NPV) of the cash flows associated with a project that costs $2,000, but is expected to generate $500, $250, $750 and $1, 080.

  What amount must nutty hospital borrow today

Assume that underwriting fees and other issuance costs will be 5% of the issue and that all debt service on the old issue must be met from the proceeds of the refunding issue and related investment income.

  What is maryanne''s return from this transaction

The option gives her the right to buy the stock for $27 per share until March 1st. On February 15th, the stock price rises to $32 per share, and Maryanne exercises her option. What is Maryanne's return from this transaction?

  What insights revealed by this statement

total company segmented by sales terri-tory. What insights revealed by this statement should be brought to the attention of management

  What is the sustainable growth rate

At the end of the year, the company had total assets of $195,000. During the year, the company sold no new equity. What is the sustainable growth rate?

  What will one share of this common stock be worth

The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth 11 years from now if the applicable discount rate is 8.0 percent?

  Your mission is to develop a comprehensive report

Your mission is to develop a comprehensive report to your CEO based on the topics covered in the course. Your task is to analyze the company in this context and provide recommendations. You decide how each topic should be addressed, and includ..

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