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!
You are a funds manager for a large bank. On April 15, your bank lends a corporation $35 million, with interest payments to be made on July 16, October 15, January 16, and next April 16. The amount of interest will be determined by LIBOR at the beginning of the interest payment period. On April 15, LIBOR is 8.0 percent. Your forecast is for declining interest rates, so you anticipate lower loan interest revenues. You decide to buy an interest rate floor with a strike set at 8 percent and a premium of $60,000. Determine the cash flows associated with the loan if LIBOR turns out to be 7.9 percent on July 16, 7.7 percent on October 15, and 8.1 percent next January 16. The payoff is based on the exact number of days and a 360-day year. If you have a financial calculator or spreadsheet with an IRR function, determine the internal rate of return and annualize it to determine your annualized return on the loan
‘‘Companies with high credit risks are the ones that cannot access fixed-rate markets directly. They are the companies that are most likely to be paying fixed and receiving floating in an interest rate swap.''- Do you think it increases or decrease..
Discuss how you may have used TVM in a recent investment or loan decision and explain some of the TVM details that may have been involved in your transaction.
The Boston Bottling Company is contemplating the replacement of one of its bottling machines with a newer and more efficient one. The old machine has a book value of $600,000 and a remaining useful life of 5 years. The firm does not expect to realize..
9. Real estate investors expect a much higher return on their investments than, say, investors in high-grade bonds. This is because the risks involved in real estate are perceived as being a lot greater than for many other kinds of investments. Wha..
business organization and stock ratiosdetermine at least two benefits to an organization using a partnership business
The corporations pay no taxes and investors pay no taxes on capital gains, but pay a 30% income on dividends. What is the value of the dividend that investors expect corporation B to pay one year from today?
total fixed costs175000variable costs48 per patientcharges150 per patientusing the above informationdetermine the
A group of concerned citizens has established a trust fund that pays 6% interest , compounded monthly, to preseerve a historical building by providing annual maintenance funds of $30,000 forever. Compute the capitalized equivalent amount for these..
What is the value today of a 10,000 payment made in perpetuity assuming a 8% discount rate?
A 3-year zero coupon corporate bond is traded at a price of $760. A 3-year zero coupon Treasury bond is traded at $820. Both bonds have face value of $1000. What is the default risk premium for the corporate bond if yields are compounded semi-annu..
Define and explain the credit multiplier
Prepare a report for the mayor and city council on your proposed expenditure plan assessing the key course objectives including fund accounting and financial controls, control and management of public expenditures, government financial reporting r..
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