Business, 15.04.2020 23:56 bay97

Your company will receive USD10,000,000 in 3 months' time and will keep the funds for a 3-month period to cover a payable 6 months from today. Your analysts think that interest rates may fall from their current level at 6.1% and you want to protect the return you will get until you need the funds. BNP-Paribas, a French bank, offers a FRA with an interest rate of 6% to cover the extra funds for the 3-month period 3 months from today. Your company decides to take the FRA offer from BNP-Paribas. What will happen to both parties if interest rates 3 months from now are at the following rates? 6.1% 5.2% 6.0% Show all calculations leading to your conclusions on any amounts that might need to be exchanged.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:50

At a roundabout, you must yield to a. already in the roundaboutb. entering the roundaboutc. only if their turn signal is ond. only if they honk at you

Answers: 1

Answer

Business, 22.06.2019 20:00

During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above

Answers: 3

Answer

Business, 22.06.2019 20:20

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.

Answers: 2

Answer

Business, 23.06.2019 05:30

What is a potential negative effect of an expansionary policy? decreased borrowing increased interest rates increased inflation decreased available credit

Answers: 1

Answer

You know the right answer?

Your company will receive USD10,000,000 in 3 months' time and will keep the funds for a 3-month peri...

Questions