User Account

All Pages

What currency do have to pay the other swap party

Assignment Help Accounting Basics
Reference no: EM132465567

Question Problem 1: Assume you have the long GBP position in a 2-Year at-market fixed-for-fixed USD/GBP currency swap. Payments occur at the end of each year. The notional amount is USD 1,000,000. The interest rates are rUSD = 2% and rGBP = 3% The spot rate when the contract originated was X0USD/GBP = 1.40. At the end of year one, how much and in what currency do you have to pay the other swap party assuming that you would NOT settle with a difference check (please note that you cannot calculate the difference check yet)?

One: GBP 21,428.57

two: USD 16,612.15

three: GBP 20,000

four: USD 20,000

 

Reference no: EM132465567

Questions Cloud

Compute the balances in subsidiary accounts at end of month : Compute the balances in the subsidiary accounts at the end of the month.What is the January 31 balance in the control account?
What is the value of currency swap for company a : The next cash flow exchange will occur one year from today. If the current USD/GBP spot rate XNUSD/GBP = 1.39, what is the value of currency swap for company
What is the effective annual rate of bank : A bank offers 9.00% on savings accounts. What is the effective annual rate if interest is compounded daily?
What kind of deal did the running back scamper off with : The contract called for $12 million immediately and a salary of $2.9 million in 2018, $8.3 million in 2019, $12 million in 2020, $8.8 million in 2021 and 2022,
What currency do have to pay the other swap party : Assume you have the long GBP position in a 2-Year at-market fixed-for-fixed USD/GBP currency swap. Payments occur at the end of each year.
Compute campbell profit margin on sales : Compute Campbell's profit margin on sales. (Round answer to 4 decimal places, e.g. 4.8726%.)
Create journal entry and a t-account : Create journal entry and a T-Account for$30,000 worth of supplies is purchased with cash. Wages due to employees that had been previously recorded as
How much inventory can baker purchase without violating : How much inventory can Baker purchase without violating its debt agreement if their total current assets equal? $15 million?
Compute the bank reconciliation : Compute the bank reconciliation ,NSF Checks returned were $5,200, outstanding checks were $25,820.52, Service charges were $31.13

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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