User Account

All Pages

What is Firm YYY net borrowing cost after savings

Assignment Help Accounting Basics
Reference no: EM133007133

Question - Assume Firm XXX can borrow USD for 10 years at 5% and can borrow at a variable rate of Libor + 2%.

Firm YYY can borrow USD for 10 years at 5.5 % and can borrow at a variable rate of Libor.

Firm XXX wants to borrow at a variable rate and Firm YYY wants to borrow at a fixed rate.

Assume that a swap dealer puts a swap together and profits by 0.3%. The rest of the savings is shared equally by Firm XXX and Firm YYY.

What is Firm YYY's net borrowing cost after savings. Answer the question with decimals, not as a percentage. For instance if the answer is 2.5% enter 0.025 as your answer.

Reference no: EM133007133

Questions Cloud

How many units should be produced in January : If there were 61200 units of inventory on hand on December 31, 2016, how many units should be produced in January, 2017
What would be the total liabilities and owner equity : If the balance of the Building account was P80,000 and P30,000 of Accounts Payable were paid in cash, what would be the total liabilities and owner's equity?
Compute the current yield for each bond during the year : Last year, the yield on AAA-rated corporate bonds averaged approximately 5 per cent; Compute the current yield for each bond during the year
Which two steps in the accounting cycle are aided : Which two steps in the accounting cycle are aided by the preparation of a worksheet? journalizing transactions and closing the accounts
What is Firm YYY net borrowing cost after savings : Firm YYY can borrow USD for 10 years at 5.5 % and can borrow at a variable rate of Libor. What is Firm YYY's net borrowing cost after savings
Which of the comes first in the accounting process : Combined with the amount of any debit or credit adjustment to that account to determine the new balance of the account. This process is known as
Describe the contemporary human resources : 1. Describe the contemporary human resources. 2. Trace the evolution of the human resource function in organization.
Compute its current ratio and inventory turnover : Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers
Which comes last in the accounting process : Which comes last in the accounting process? preparation of a post-closing trial balance./ preparation of an adjusted trial balance

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