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

Cost of capital, Q. Cost of capital? The terms of cost of capital refer...

Q. Cost of capital? The terms of cost of capital refers to the minimum rate of the return a firm must earn on its investment so that the market value of the company equity shar

Define risk relate with large amount of short term financing, What are the ...

What are the risks related with using a large amount of short-term financing for working capital? Using a large amount of short-term financing usually permits funds to be raised

Capital investment decision-making process , Identify and explain the key s...

Identify and explain the key stages in the capital investment decision-making process and the role of investment appraisal in this process.

Explain official reserve assets and its major components, Explain official ...

Explain official reserve assets and its major components. Answer:  Official reserve assets are those financial assets which can be employed as international means of payments.

Show factors influencing participation, Q. Show Factors influencing partici...

Q. Show Factors influencing participation? Factors influencing participation: several research studies have shown that the intensity of participation depends on four factors.

Financial analysis task force, Task I am sure you are aware that the c...

Task I am sure you are aware that the corporate annual meeting is coming up soon. As part of the Treasurer's presentation, I have been asked to propose a Special Capital Requi

Determine about the strategic benchmarking, Determine about the Strategic B...

Determine about the Strategic Benchmarking Comparison in terms of an organisations 'strategic choices' made to the most successful market leader for example review organisat

OPERATING CYCLE, discuss the applicability of operation cycle in avegetab...

discuss the applicability of operation cycle in avegetable growing business

Saving and lone assocition, what is saving and lone function in ethiopian c...

what is saving and lone function in ethiopian context

Define forward exchange rate will be an unbiased predictor, Explain the con...

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer:  the conditions when forward exchange rate

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