User Account

All Pages

Pricing an interest rate swap

Assignment Help Business Management
Reference no: EM132383997

Pricing an interest rate swap. The one-year LIBOR rate is 3%, and the LIBOR forward rate for the 1-year to 2-year period is 3.2%, respectively. The three-year swap rate for a swap with annual payments is 3.2%.

1. What is the LIBOR forward rate for the 2- to 3-year period, if the OIS zero rates for maturities of one, two and three years are 2.5%, 2.7% and 2.9%, respectively?

2. What is the value of a three year swap where 4% is received, and LIBOR is paid on a principal of $100 million? All rates are annually compounded.

Reference no: EM132383997

Questions Cloud

Calculate the current rate on mhm corp : The Wall Street Journal reports that the current rate on 6-year Treasury bonds is 5.95 percent, the rate on 13-year Treasury bonds is 6.35 percent
Penalty for withdrawing funds before the maturity date : If the penalty involves two months of interest, what would be the amount for early withdrawal on a $78,000, 7 percent CD?
Delineating the three most salient points : Create a seven-slide (minimum) PowerPoint presentation delineating the three most salient points that you have learned in this course
Describe the circumstances under which a firm chooses : Describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage.
Pricing an interest rate swap : The one-year LIBOR rate is 3%, and the LIBOR forward rate for the 1-year to 2-year period is 3.2%, respectively.
Research a specific company of your choice : Determine if the company has introduced new products in existing markets or created new markets over time. What is the impact on its finances?
What is the degree of operating leverage of project : a) If sales increase by 10%, what will be an increase in pretax profits? b) What is the degree of operating leverage of this project?
What was the innovation : What was the innovation? Is that where the failure occurred? Would any tools we've learned so far, such as the Customer Centered Job Map, have helped?
Utilize sound reasoning and theoretical principles : It is often difficult to utilize sound reasoning and theoretical principles in stressful situations.

Reviews

Write a Review

Business Management Questions & Answers

  Important in successful projects

Read 20 Best Practices for Project Managers (Links to an external site.) Links to an external site. and discuss three tips.

  Construct a decision tree and show which promotion

1. Construct a decision tree and show which promotion alternative you would chose by using the expected value method ()? 2. Calculate the coefficient of variation (CoV) of each alternative, and determine which one should be chosen accordingly?

  Becoming a learning organizationhow does aligning training

becoming a learning organizationhow does aligning training and development efforts with the organizations overall

  Give two examples to support your stance

State your stance on whether a "bossless approach" would work within an organization.

  Difference between price leadership and price fixing

What is the difference between price leadership and price fixing? Should governments allow industries to use price leadership strategies?

  One manufacturer of dictating machines recruits

One manufacturer of dictating machines recruits merely experienced people and doesn't recruit among graduating college students. A competitor recruits extensively amongst colleges in its search for salespeople

  Summarizing this budget proposal

An Excel document summarizing this budget proposal can be found in this module.

  Qualitative dimensions of farming systems

What can be done to improve the qualitative dimensions of farming systems and not just increase yields and total production?

  Expand current business also marketing models

As a business manager, you will often be asked to evaluate also expand current business also marketing models.

  Write a letter that retains good customer relations

Write a letter that retains good customer relations with Jamba Juice but refuses this request. What reasons can you give, and what alternatives are available?

  Purchase of insurancethe main reason that diversified

purchase of insurancethe main reason that diversified shareholders might not want their corporate managers to purchase

  Determine the best way that three major concepts

Determine the best way that three major concepts you learned in COMPENSATION MANAGEMENT could be applied or recognized in organizations.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd