Reference no: EM131290830
A pension fund wants to enter into a six-month equity swap with a notional principal of $60 million. Payments will occur in 90 and 180 days. The swap will allow the fund to receive the return on a stock index, currently at 5,514.67. The fund is considering three different types of swaps, one of which would require it to pay a fixed rate, another that would require it to pay floating rate, and another that would require it to pay the return on another stock index, which is currently at 1,212.98. Refer to these as swaps 1, 2, and 3. The term structure is as follows:
a. Find the fixed rate for swap 1.
b. Find the payments on day 90 for swaps 1, 2, and 3. For swap 3, assume that on day 90 stock index 1 is at 5,609.81 and stock index 2 is at 1,231.94. Be sure to indicate the net payment.
c. Assume it is 30 days into the life of the swap. Stock index 1 is at 5,499.62, and stock index 2 is at 1,201.45. The new term structure is as follows:
|
Define an entrepreneurial opportunity for company
: Define an "Entrepreneurial Opportunity" for company.- Identify the major problems you/or the company you work for wants to address.
|
|
What is the least number of boxes of popcorn
: What is the least number of boxes of popcorn that the athletic booster can sell at the next game to make a profit?
|
|
Define the basic concept used in the discipline of sociology
: Define the basic concepts used in the discipline of sociology.Define the various methodologies for sociological research.Identify the sociological perspective to the inequalities of class, race, gender, ethnicity, sexual orientation, socioeconomics..
|
|
Adult sanctions for juvenile offenders
: Do you agree with people who favor adult sanctions for juvenile offenders; for example, "If you're old enough to do the crime, you're old enough to do the time"? Why or why not? Where should the line be drawn? Why?
|
|
Find the fixed rate for swap 1
: Assume it is 30 days into the life of the swap. Stock index 1 is at 5,499.62, and stock index 2 is at 1,201.45. The new term structure is as follows:
|
|
What is the cumulative tax advantage of the merger
: What is the cumulative tax advantage of the merger? What is the maximum cash price that should be paid for Harassed Hippo? (Consider the npv only)
|
|
Business strategy and organisations human resource strategy
: Why is it important to have a very close relationship between business strategy and and an organisation's human resource strategy?
|
|
Organizations monitoring and collecting information
: Some managers and organizations go to great lengths to monitor their employees' behavior, and they keep extensive records about employees' behavior and performance. Think about the ethical implications of organizations' monitoring and collecting ..
|
|
Write a brief summary on commentaries
: Provide a critical analysis of the author's position. Please note that to be critical does not always mean to be negative. It might be the case that you agree with the author's main arguments. In either case, you need to support your assessment by..
|