What is the value of the interest rate swap to the party

Reference no: EM13260042

A particular interest rate swap involves one party paying a fixed rate of 2.84% on a notional principal of $95 million to a second party and that party paying a floating rate LIBOR on the same notional amount. On the prior payment date, LIBOR was 2.16%. There is 0.34 years until the next payment date and over the remaining life of the swap an additional six payments will be made every six months thereafter. LIBOR rates with maturities corresponding to the seven remaining payment dates are: 2.23%, 2.31%, 2.36%, 2.42%, 2.47%, 2.51%, and 2.56%, respectively. What is the value of the interest rate swap to the party that receives the fixed-rate payment and pays the floating-rate payment? What is the value of the same interest rate swap to the party that receives floating and pays fixed?

Reference no: EM13260042

Questions Cloud

By how much will the length of this rod change : A straight rod consists of a 1.2-cm-long piece of aluminum attached to a 2.0-cm-long piece of steel. By how much will the length of this rod change

Explain the wavelength of the line in the emission spectrum : Use the appropriate relationships from the chapter of electrons in Atoms to determine the wavelength of the line in the emission spectrum of He+ produced by an electron transition from n=5 to n=2

How many shares will be required for a minority group : Given that there are 4,000,000 shares outstanding in Miller Corp how many shares will be required for a minority group of stockholders to elect 2 of 9 members on the board of directors? ( Assume cumulative voting required)

What is the maximum transverse speed of the bead : In lab, your instructor generates a standing wave using a thin string of length L = 2.10m fixed at both ends. What is the maximum transverse speed vy of the bead

What is the value of the interest rate swap to the party : What is the value of the interest rate swap to the party that receives the fixed-rate payment and pays the floating-rate payment? What is the value of the same interest rate swap to the party that receives floating and pays fixed?

Find the gravitational potential energy of the ball : A ball of mass 2.4 kg hangs at the end of a string 1.4 m in length from the ceiling of a room. What is the gravitational potential energy of the ball relative to the floor

Which of the following actions would improve this ratio : Which of the following actions would improve this ratio? (Hint: create a simple balance sheet that has a current ratio of 0.5. Then, judge how the transactions below would affect the balance sheet.)

Explain minimum energy required to cause the photo electric : The minimum energy required to cause the photo electric effect in potassium metal is 3.69*10^-19 J. will photoelectrons be produced when light shines on the surface of potassium?if 400 nm radiation is shone on potassium,what is the velocity of the..

What are the double slit characteristics : Laser beam with wavelength 632.8 nm is aimed perpendicularly at opaque screen with two identical slits on it, What are the double slit characteristics (slit width, slit separation)

User Account

All Pages