User Account

All Pages

What is the value of the swap

Assignment Help Finance Basics
Reference no: EM133120130

You hold a swap contract under which receive LIBOR and pay 6% fixed, based on $20 million notional principal. The payments are semiannual and the swap matures in 1 year. Assume a payment has just been made (we are standing just after the reset date), and that the riskless yield curve is flat at 3% (continuously compounded). What is the value of the swap?

Reference no: EM133120130

Questions Cloud

What is continuously compounded holding : At time t = 0 (Now), in the bond market you observe a regular coupon bond with following characteristics: Face value: $1,000.00; Maturity: 5 years; Coupon rate:
What specific disciplinary skills : What specific disciplinary skills (i.e. skills learned in your major) could you apply to your chosen service organization?
Explain the dominance of american banks : Even though the US economy is only about 15% of global GDP, US banks earn 60-70% of global banking fees. Give three reasons to explain the dominance of American
Write out the equation for the theoretical futures price : The 6-month interest rates in Canada is 0.70% and in the US it is 1.10% per annum with continuous compounding. Assume the USD/CAD spot price is 0.7870 (i.e. one
What is the value of the swap : You hold a swap contract under which receive LIBOR and pay 6% fixed, based on $20 million notional principal. The payments are semiannual and the swap matures i
Coefficient of correlation between the spot price change : A trader owns 55,000 units of a particular asset and decides to hedge the value of her position with futures contracts on another related asset. Each futures co
Executive summary on the company ford : A DETAILED paragraph directed toward the company's CEO giving an overview of the risk management project and a summary of results. Company annual reports are a
Assumptions associated with the company ford : What are the key assumptions associated with the company FORD which could benefit from a risk management strategy that uses futures. List them and explain in de
Characteristics of corporate foreign bonds and eurobonds : You are the CFO of a large manufacturing company. Your company wants to borrow more than USD 50million to finance a promising opportunity.

Reviews

Write a Review

Finance Basics Questions & Answers

  What if invest the same amount at the baa yield

Annuity Future Value. The St. Louis Federal Reserve Board has files listing historical interest rates on its website www.stlouisfed.org.

  Business communication essentials

What is the business communication essentials information and media sharing sites are?(2)what are some benefits and drawback to using IM to communicate business

  Classify the balance sheet items under fixed assets

Classify the following balance sheet items under fixed assets, working capital, shareholders' equity or net debt: overdraft

  Compute risk and return measures for barnes and noble

compute risk and return measures for barnes and noble standard deviation beta against sampp 500 and 2. estimation and

  How much will you have in twelve years

You are scheduled to receive $20,500 in three years. When you receive it, you will invest it for nine more years at 9 percent per year.

  Compute the return on equity ratio for 2015

HSA 304 Create your own financial statement by changing the values for each section and solving - Complete the Cash Flow Analysis for Lehman Hospital

  What should be its yield to maturity

You know that the assets of a firm are today worth 100mil. There is only one share of equity outstanding. You reasonably feel that in a year they will be either

  Market risk premium-bright events

Bright Events has been growing at a rate of 20% per year, and you expect this growth rate in earnings and dividends to continue for another

  Kads inc has spent 400000 on research to develop a new

kads inc. has spent 400000 on research to develop a new computer game. the firm is planning to spend 200000 on a

  Net cash flow of the swap to the financial institution

A financial institution has entered into an interest rate swap in which it receives 10% per year with semiannual compounding and pays 6-month LIBOR.

  What amount of annual oas will she qualify

What amount of annual OAS will she qualify for if she delays retiring until age 67? Assume her annual retirement income will be under $75,000

  What are two tactics that a financial manager can use

Are these practices ethical? What are two tactics that a financial manager can use to manage earnings? What are the implications for cash flow and shareholder wealth?

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