subject
Business, 02.04.2021 01:00 lillypierre8796

A semi-annual pay interest rate swap where the fixed rate is 5.00% (with semi-annual compounding) has a remaining life of nine months. The six-month LIBOR rate observed three months ago was 4.85% with semi-annual compounding. Today's three and nine month LIBOR rates are 5.3% and 5.8% (continuously compounded) respectively. From this it can be calculated that the forward LIBOR rate for the period between three- and nine-months is 6.14% with semi-annual compounding. If the swap has a principal value of $10,000,000, what is the value of the swap to the party receiving a fixed rate of interest

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 17:00
Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .
Answers: 1
question
Business, 22.06.2019 19:30
One of the benefits of a well designed ergonomic work environment is low operating costs is true or false
Answers: 3
question
Business, 22.06.2019 20:40
Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.
Answers: 2
question
Business, 22.06.2019 21:50
By which distribution system is more than 90 percent of u.s. coal shipped? a. pipelinesb. trucksc. waterwaysd. railroadse. none of the above
Answers: 1
You know the right answer?
A semi-annual pay interest rate swap where the fixed rate is 5.00% (with semi-annual compounding) ha...
Questions
question
Biology, 17.09.2019 07:30
Questions on the website: 13722361