In regards to interest rate swaps

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1. In regards to Interest Rate Swaps: If a company was willing to accept some of the risk of the interest rate changing and only wanted to protect itself from let's say 50% of the change; could it do that?

2. The past five monthly returns for PG&E are −3.39 percent, 4.43 percent, 3.99 percent, 6.80 percent, and 3.80 percent. Compute the standard deviation of PG&E’s monthly returns

3. What is the present value of a series of payments received each year for 4 years, starting with $100 paid one year from now and the payment growing in each subsequent year by 6%? Assume a discount rate of 9%.

Please round your answer to the nearest cent.

Reference no: EM131886542

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