What are the payments the two parties

Assignment Help Finance Basics
Reference no: EM133070693

Marist Manufacturing Corp (MMC) is a pension sponsor which enters into a swap with Oz Assets (OA)-an Australian investment manager. The notional amount is $80million. Each year, MMC agrees to pay OA the return realized on the S&P index minus 200 basis points and receive from OA the annual return realized on the Australian stock market index (S&P/ASX). In the first year, the S&P returns 11% and the S&P/ASX returns 16%. What are the payments the two parties make to each other?

Reference no: EM133070693

Questions Cloud

Identify existing challenges or social problems : Analyze the current situation on the selected public policy and identify existing challenges or social problems.
What the gross estate for Philippine estate tax purposes : Question - A resident Chinese national died and left assets in China valued at P80 million. What the gross estate for Philippine estate tax purposes
What is the future of work - cybersecurity professional : Discuss strategy and then come back together to debate the topic and How does your side win? By having the most convincing argument backed up by evidence
Common types of maltreatment of children : Describe the four common types of maltreatment of children and explain the possible effects child abuse and neglect can have.
What are the payments the two parties : Marist Manufacturing Corp (MMC) is a pension sponsor which enters into a swap with Oz Assets (OA)-an Australian investment manager. The notional amount is $80mi
Fourth amendment protection : The Supreme Court held that vehicles were held to a lesser standard of Fourth Amendment protection by stating that a warrant wasn't required.
Determine gross estate for Philippine estate tax purposes : Shares of stocks of Apple Corporation, US corporation listed in NY Stock Exchange - $5,000. Determine gross estate for Philippine estate tax purposes
How does facebook make money : -Question 1: How does Facebook make money? What are its comparative advantages relative to other social networking companies?
Explain legal term contributory negligence : Explain the "neighbour principle" as stated by Lord Atkin in Donoghue v Stevenson. In relation to the law of tort, explain legal term "contributory negligence

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the price today of a two-year

What is the price today of a two-year, default-free security with a face value of $1,000 and an annual coupon rate of 7%? The price is $.

  What is the company cost of capital

You are interested in calculating the cost of capital of ‘The lions' Company, based on the average WACC of its industry, which is 11%.

  Analyze the long term debt of general electric company

Do the companies appear to maintain a certain level of long-term debt? Since these exercises depend upon real-time data, your answers will change continuously depending upon when you access the Internet to download your data.

  A commerical real estate property has been evaluated by an

a commerical real estate property has been evaluated by an appraiser who estimates the following net operating income

  What is the market debt-to-equity ratio of each firm

What is the market debt-to-equity ratio of each firm? What is the book debt-to-equity ratio of each firm?

  What will the following investment accumulate

What will the following investment accumulate to (i.e., find the future value, (FV)): $100,000 invested today (so PV = $100,000) for 5 years at 8 percent compou

  What is the weighted average cost of capital for this firm

Companies obtain the funds needed for capital investments from multiple sources. To evaluate potential projects, the cost of the different sources of capital.

  Internal environmental analysis on domino pizza

Identify company strengths and weaknesses. What must the company do to perform successfully in the industry?

  Describe the seven types of wastes

Describe the seven types of wastes. Give three examples of each. How can we eliminate or lessen those wastes? Give two ways.

  Determine primary roles of the sec

Determine three primary roles of the SEC and explain how does the Sarbanes Oxley Act augment the SEC's role in managing financial governance? Do you think that businesses are more ethical after the passing of the Sarbanes Oxley Act?

  Calculate the value of the option

If you wait one year to start the project, the initial cost will rise to $520 and the cash flows will increase to $385 a year for 3 years. How do you calculate the value of the option to wait and what is that value?

  Find her monthly payment by both the formula method

Jane purchased her first home for $95,000. She made a down payment of 20% and financed the rest at 8% for 20 years. Find her monthly payment by both the formula method and the table method.

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