What will the terms of the swap be

Reference no: EM131923053

Question: A company expects to receive ¥ 5,650,000 from a customer each quarter for the next year. It would like to hedge the exchange rate risk of this payment by entering into a swap to receive a fixed US dollar payment. The expected exchange rates for the ¥ (in ¥ per $) for the next four quarters are: 0.008816, 0.008858, 0.008903, and 0.008954. The risk free interest rates for 90-day, 180-day, 270-day and 1-year loans are: 0.805%, 0.95%, 1.08%, and 1.21%. What will the terms of the swap be?

Reference no: EM131923053

Questions Cloud

How much deadweight loss is caused by the tax : Calculate consumer and producer surplus before and after the tax. How much tax revenue does Where town receive? How much deadweight loss is caused by the tax?

What is the market rate of return on the stock : The common stock of Eddie's Engines, Inc. sells for $28.71 a share. The stock is expected to pay $3.60 per share next year.

How much kinetic energy would a proton acquire : How much kinetic energy would a proton acquire, starting at rest at point B and moving to point A?

Calculate the change in kinetic energy : At the local discotheque the speed dial controlling the 5 kg solid and uniform disco ball of diameter 10 cm malfunctioned causing the disco ball to accelerate

What will the terms of the swap be : A company expects to receive ¥ 5,650,000 from a customer each quarter for the next year. It would like to hedge the exchange rate risk of this payment.

How you would plan to accomplish the completion of project : Include in your analysis, the job titles of the 3 people you would eliminate from the team and how / where you would allocate those resources.

Why is it unlikely the candidate could achieve the reduction : A challenger presidential candidate vows to cut entitlement spending by 20 percent. Why is it unlikely the candidate could achieve this reduction?

Right hand reaction time than left hand reaction time : Suppose you drop the meterstick and it falls 25.0 cm for your left hand but only 15.0 cm for you right hand. How much faster was your right hand reaction time

What is the best estimate for the weights to be used : The balance sheet for OUS Corp is shown below. The bonds are currently selling at 97.5% of par. There are 500 shares of preferred stock outstanding.

User Account

All Pages