Define condition for fixed-for-floating interest rate swap, Financial Management

Assignment Help:

What is the essential condition for a fixed-for-floating interest rate swap to be possible?

For a fixed-for-floating interest rate swap to be feasible it is essential for a quality spread differential to exist. Generally, the default-risk premium of the fixed-rate debt will be larger as compared to the default-risk premium of the floating-rate debt.


Related Discussions:- Define condition for fixed-for-floating interest rate swap

Define how the market determine the fair value of a bond, How does the mark...

How does the market determine the fair value of a bond? The bond’s fair value is the present value of the bond's coupon interest payments plus the present value of the face value

Alternative dividend policies, The managing directors of three profitable l...

The managing directors of three profitable listed companies discussed their companies' dividend policies at a business lunch. Company A ; has deliberately paid no dividends for

Net income, What remains of an organization revenue after all expenses and ...

What remains of an organization revenue after all expenses and taxes have been paid.

Calculate the minimum price sell for in a rational market, Suppose spot Swi...

Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950.  What is the minimum price which a six-month American call option along with a striking price of $0.6

Explain a variety of factors determining dividend policy, Q. Explain a vari...

Q. Explain a variety of factors determining Dividend Policy? Dividend: - Dividend demotes to that part of net profits of a company which is distributed between shareholders as

What are the internal audits, What are the Internal audits Internal au...

What are the Internal audits Internal audit is seen as independent from management who are devising and implementing internal controls and must be able to provide advice on in

Explain the procedure for cost benefit analysis, Question 1: i) Pe...

Question 1: i) Performance budgeting is the best budgeting system. Discuss. ii) Why there is a need for implementing MTEF in the Mauritian Public Sector? Questi

Advantages and disadvantages of pay back period, Advantages: It is ...

Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.

Explain retail and wholesale banks in commercial banking, Explain about the...

Explain about the retail and wholesale banks in the commercial banking. Retail and wholesale banks: Commercial banking can also be separated within retail and wholesale b

Help ASAP, If firm A has a higher debt-to-equity ratio than firm B then tha...

If firm A has a higher debt-to-equity ratio than firm B then that means what

Write Your Message!

Captcha
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