A bank has an interest rate swap which involves receiving 4, Financial Management

+44 141 628 6080
[email protected]

A bank has an interest rate swap which involves receiving 4

A bank has an interest rate swap which involves receiving 4% per year with semi-annual compounding and paying LIBOR every 6 months on $100 million. The swap has 9 months remaining. The LIBOR rate 3 months ago was 3.9% per year with semi-annual compounding. The forward LIBOR rate for the 3-9 month period is 4.429%. The continuously compounded zero rates for maturities of 3 and 9 months are 3.8% and 4.2%, respectively. What is the value of the swap to the bank?

-$0.2574 million

-$0.1645 million

-$0.1583 million

$0.1583 million

$0.1645 million

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Financial Management: A bank has an interest rate swap which involves receiving 4

Reference No:- TGS02283043

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Discussion about gender stereotyping

Prior to your taking this graduate HR law class you had heard of the term "gender stereotyping," but didn't know much about it.

Problem regarding the america youth and social media

Think about where you were the most and least engaged when reading a classmate's draft. Think about what captured your attention

Problem on journal articles and non-journal materials

Amanda said? Excellent post, Chrystal. You provided great insight into the helpful resource ERIC digital library is. I appreciate how it states the information

How we perceive objects in the real world

Suppose that a group of researchers would like to explore how we perceive objects in the real world, rather than just in a laboratory

Describe some of your personality traits

Adler believed that your birth order determines, to a large extent, your personality. He stated that your traits reflect, somehow, how you have achieved

Outline a social issue that is important to you

Outline a social issue that is important to you. Describe why it is important to you, why it is important from a societal perspective and how you think

Discuss three ethical guidelines that are important

Identify and discuss three ethical guidelines that are important to consider when designing an 8-week group for adolescents who are referred

Request for Solution File

Ask an Expert for Answer!!

Financial Management: A bank has an interest rate swap which involves receiving 4

Reference No:- TGS02283043

Have a Question? (oR Write a Review)

Recent Questions Asked Financial Management

Q : If the skeleton keeps appreciating at the same average

Q : Take time corporation will pay a dividend of 390 per share

Q : What is the maximum you should be willing to pay for this

Q : What is the appropriate cost for retained earnings in

Q : A bank has an interest rate swap which involves receiving 4

Q : It plans to accumulate the necessary funds by making equal

Q : What was the annual compound rate of return on your

Q : Nature food inc needs to estimate the cost of financing on

Q : Bank enters into an interest rate swap with a nonfinancial