Find the value today to party paying dollars of this swap

Assignment Help Financial Management

Reference no: EM131579982

A swap established 4 years ago has 3 years remaining maturity. The swap calls for exchanging interest only on euro10m at 5% for 15m at 3%. Assume semiannual payments and the last payments were exchanged yesterday. today's exchange rate is $1.3/euro and the interst rate os 2% in the U.S and 2.5% in the euro zone.

Find the value today to the party paying dollars of this swap.

Reference no: EM131579982

Questions Cloud

Why is financial management essential to success of company : Why is financial management essential to the success of a company? What can potentially happen if the cash flow is not properly managed?

How long do you have to pay before the account is overdue : How long do you have to pay before the account is overdue? If you take the full period, how much should you remit?

Assess the level of intensity of the major competitive force : Assess the level of intensity of the major competitive forces affecting the Chinese restaurant industry using the five forces framework.

What is the difference in the maturity risk premiums : What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP5 - MRP3?

Find the value today to party paying dollars of this swap : A swap established 4 years ago has 3 years remaining maturity. Find the value today to the party paying dollars of this swap.

Identify two techniques you would use : Identify two techniques you would use and state the advantages and disadvantages of each.

Inflation and interest rates : In late 1980, the U.S. Commerce Department released new data showing inflation was 15%. What was average expected inflation rate over 5-year period 1981-1985?

Prepare notional journal entries : Prepare notional journal entries (with narrations) to consolidate the financial statements of Mega Store Limited

List five ways to strongly authenticate a remote machine : List three distinct technologies for protecting files from tampering, and justify your answers.

User Account

All Pages