How much is pe required to pay cba

Assignment Help Accounting Basics
Reference no: EM133071148

Question - Parramatta Enterprises (PE) has recently issued $14 million in floating rate notes in order to fund the next stage of an investment project. The notes pay an annual coupon of BBSW plus 150 basis points. The company approaches Commonwealth Bank (CBA) to establish an intermediated vanilla swap. The swap contract sets a fixed rate of 7.20 per cent per annum and a reference rate of the 12-month BBSW.

At the first interest payment date, the BBSW is 7.75 per cent per annum. How much is PE required to pay CBA at the first interest payment date?

Reference no: EM133071148

Questions Cloud

How should the transaction be valued and recorded : If an appropriate market rate of interest for the note receivable is not known, how should the transaction be valued and recorded on December 31, 2020
What is his debt-to-income ratio : Cid has a gross monthly income of $4,000. His monthly minimum debt payment is $500. What is his debt-to-income ratio
What is the probability that this person is a female : If you choose an employee at random from this corporation, what is the probability that this person is a female who engages in physical exercise activities
Calculate the payback period for each period : Murdoch Pty Ltd is considering three mutually exclusive projects. Calculate the payback period for each period
How much is pe required to pay cba : At the first interest payment date, the BBSW is 7.75 per cent per annum. How much is PE required to pay CBA at the first interest payment date
J/617/2270 Managing Business Information Assignment : J/617/2270 Managing Business Information Assignment Help and Solution, OTHM Level 4 Diploma In Information Technology - Assessment Writing Service
How many commercial messages should be run : If the promotional budget is limited to $20,500, how many commercial messages should be run on each medium to maximize total audience contact
R/617/2269 Software Development Assignment : R/617/2269 Software Development Assignment Help and Solution, OTHM Level 4 Diploma In Information Technology - Assessment Writing Service
L/617/2268 Computer and Network Technology Assignment : L/617/2268 Computer and Network Technology Assignment Help and Solution, OTHM Level 4 Diploma In Information Technology - Assessment Writing Service

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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