--%>
Assignment Help - homework help

Question on floating-rate

Your firm have just issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%.  Describe the amount of first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is at present 7.2%?

Solution:  0.5 x (.072 + .0025) x $1,000 = $37.25.

   Related Questions in Financial Management

  • Q : Explain the term AGARCH as of the

    Explain the term AGARCH as of the GARCH’s family.

    		•
  • Q : Question on interest pay through

    Grecian Tile Manufacturing of Athens, Georgia borrows $1,500,000 at LIBOR and a lending margin of 1.25 percent per annum on six-month rollover basis through London bank.  If six-month LIBOR is 4 ½ percent in the first six-month interval and 5 3/8 percent over the second six-mo

    		•
  • Q : Example of restrictive covenants given

    Give an example of restrictive covenants that could be given in a bond’s indenture?

    		•
  • Q : Calculate the weighted average cost of

    Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding,

    		•
  • Q : What is calibration in

    What is calibration in valuation/pricing process?

    		•
  • Q : Explain Decision features in

    Explain the term Decision features in finite-difference methods.

    		•
  • Q : Financing costs included into the

    Financing costs included into the capital budgeting analysis process. Explain.

    		•
  • Q : What is Coherent Measure What is

    What is Coherent Measure?

    		•
  • Q : Diversifiable and non-diversifiable risk

    Explain the terms: diversifiable and non-diversifiable risk. Which one is more important to financial managers in business firms?

    		•
  • Q : Tool for international diversification

    Assess a home country's multinational corporations as tool for international diversification.In spite of the fact that MNCs have operations worldwide, their stock prices act very much like purely domestic firms. It is puzzling yet undeniable. Co

    		•