What is the absolute value of the swap

Assignment Help Financial Accounting
Reference no: EM132792977

Question - Consider a plain vanilla fixed for floating interest rate swap with a notional principal of 2,100,000 and annual payments. Initially the swap was supposed to last for five years and now three years remain. If the initial fixed rate is 0.01, LIBOR is 0.03, and the year three payment was just made (two years of payments remain on the swap), What is the absolute value of the swap?

Reference no: EM132792977

Questions Cloud

Describe a parable that you remember hearing or reading : In a paragraph, describe a parable (religious or non-religious) that you remember hearing or reading. Why do you remember it and what do you remember being.
Unit 14 Building Information Modelling Assignment : Unit 14 Building Information Modelling Assignment Help and Solution, Higher National Certificate/Diploma in Construction and the Built Environment - Assessment
Cause-and-effect diagram : The cause-and-effect diagram is important in determining causes and effects of a problem.
How does a person change public policy : To get at "How does a person change public policy to stop the Horrors reported here?" what means does Ida B Wells deploy? What was she doing in these writings?
What is the absolute value of the swap : If the initial fixed rate is 0.01, LIBOR is 0.03, and the year three payment was just made, What is the absolute value of the swap
Cloud computing technologies : Select an organization that has leveraged Cloud Computing technologies in an attempt to improve profitability or to give them a competitive advantage.
Discuss the future of omni-channel banking : What is the future of 'Banking' in UDS? Discuss the future of Omni-channel banking in the face of numerous technological developments
How slave action or speech could reveal the violence : The ideology of paternalism was a cover for coercion and violence that was at the core of slave-owner and slave relationship. Briefly explain slave-owner.
Compute what is the company net profit after taxes : Ramsay found out that he was missing the company's net profits after taxes for the current year. Compute what is the company net profit after taxes

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain the effects of the transactions on her ratios

Cindy Green, owner of "Gardens for You" has questions regarding financial results of the company. The return on sales ratio is 25% and the gross margin ratio is 65%. She has read that others in this industry have higher ratio's and is concerned that ..

  How do prepare entries for the capital projects fund

Prepare entries for the capital projects fund for 20X2. The City of Waterman established a capital projects fund for the construction of an access ramp

  Determine the fair value of the debentures at time of issue

ACC204 - Advanced Financial Accounting Questions. On 1 July 2015 Kruger Ltd privately issues $1 million in six-year debentures, Determine the fair value

  How wal-mart utilizes accrual journal entries

Journal entries to comply with the matching principle. Without plagiarizing, explain how Wal-Mart utilizes accrual journal entries and complies with principle

  Question one issue in accounting is the qualifications of

question one issue in accounting is the qualifications of an accountant when working for a client. it is expected that

  Compute equivalent units of completed and transferred out

WIP were 3000 units degree of completion (DM 100% and CC 80%), Using FIFO Method compute equivalent Units of Completed and transferred out (FG)

  Prepare journal entries to record event related to copyright

Prepare journal entries to record the events related to the copyright and sales of the book during 2016 and 2017, assuming that sales were as projected.

  Provided maintenance services for elevators

Since 1970, Super Rise, Inc., has provided maintenance services for elevators. On January 1, 2016, Super Rise obtains a contract to maintain an elevator in a 90-story building in New York City for 10 months and receives a fixed payment of $91,000. wh..

  Current assets-long-term investments and intangible assets

On the classified balance sheet, the assets are listed in sections: Current Assets, Long-term Investments, PP&E, Intangible Assets, and Other Assets. Do all of these need to be in order of liquidity? For example, does it matter if Land is before Buil..

  Find what circumstances might a year notes payable maturing

Find what circumstances might a 5-year notes payable maturing 30 days after the balance sheet date be classified as a long-term liability?

  Did find pinks talk surprising why or why not

How do you think managers can use this knowledge to motivate their employees? How will you use this knowledge in your own pursuits?

  Bright line reported the revenues and expenses

Cherry received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $22,000 guaranteed payment each year for ongoing services sh..

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