Find the value today to the party paying dollar of this swap

Assignment Help Financial Management
Reference no: EM132020079

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: EM132020079

Questions Cloud

How much is her monthly mortgage payment : The loan is payable in monthly installments over a 15 year period at interest rate 6% per year. How much is her monthly mortgage payment?
Prepare the necessary year-end adjusting entry for bad debt : At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly
What is the forward libor rate for the period : All rates are quarterly compounded. Assume that LIBOR is used as the risk- free discount rate.
In which type of account and in what institution would you : Limit your research to five institutions and please include one savings bank, one commercial bank, and one credit union among them.
Find the value today to the party paying dollar of this swap : 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%.
Find the price of a two-year european put option on xyz : Using put-call parity, find the price of a two-year European put option on XYZ with the same strike price.
What must be the amount of the annual dividend which : If you require an annual rate of return of 12 percent, what must be the amount of the annual dividend which you expect to receive at the end of Year 1?
What level of sales would swann have to obtain to generate : The company's president is disappointed with the forecast and would like to see Swann generate higher sales and a forecasted net income of $2,000,000.
Assess whether vestor should make the warehouse investment : The firm is considering a new investment in a warehousing facility, which it believes will generate an internal rate of return of 11.5%

Reviews

Write a Review

Financial Management Questions & Answers

  Cost of equity the earnings-dividends and common stock price

Cost of Equity The earnings, dividends, and common stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $26.00 per share, its last dividend was $2.00, and the company will pay a dividend of $2...

  Annualize expenses for twelve-month period

Telephone expense for nine months on Joe's departmental expense report amounts to $1,800. Joe must now annualize expenses for a twelve-month period. Joe's annualized twelve-month telephone expense would amount to $?

  The required rate of return of the investment

Company CS paid cash dividends of $1 per share. The management of the company estimates that the growth rate of dividends is 20% per year for the next ten years. After that the growth rate of dividends is expected to be 10% per year to infinity. What..

  What price and quantity will he recommend

The smith company, run by 4 partners in a noncompetitive market, produces a particular type of widget in a single manufacturing facility. What price and quantity will he recommend? What is the firm’s profit? What price and quantity will she recommend..

  Whose stock trades in the tsx exchange

Burger King is owned by Restaurant Brands International Inc., a Canadian parent company, whose stock trades in the TSX exchange (Canada). Rather than using Burger King as a comparable company to McDonald's, I recommend you use The Wendy's Corporation..

  What is the rate of return on your investment

what is the rate of return (APR) on your investment if we assume annual compounding? What about semi-annual compounding?

  Concerning the taxation of dividends and capital gains

Which one of the following statements is correct concerning the taxation of dividends and capital gains?

  Integer linear programming

Company X has seven pending tasks, each of which takes a given number of days to be finished. The amount of time required for each of the tasks are (in days): 10, 8, 6, 5, 4, 4 and 3. There are three employees that can be assigned to any of the tasks..

  Calculate the carrying costs and restocking costs

Clap Off Manufacturing uses 2,000 switch assemblies per week and then reorders another 2,000. Calculate the carrying costs.Calculate the restocking costs.

  Stock split-what was last year dividend per share

which represents a 7% increase over last year's pre-split dividend. What was last year's dividend per share?

  Assume that the average rate of return over entire period

Assume that the average rate of return over the entire period will be 10%.

  What are the four perfect market assumptions

Is a deposit into a savings account more like a long-term bond investment or more like a series of short-term bond investments?

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