A swap agreement calls for durbin industries to pay


A swap agreement calls for Durbin Industries to pay interest annually based on a rate of 1.5% over the one-year T-bill rate, currently 6%. In return, Durbin receives interest at a rate of 6% on a fixed-rate basis. The notional principal for the swap is $50,000. What is Durbin’s net interest for the year after the agreement? 

Solution Preview :

Prepared by a verified Expert
Finance Basics: A swap agreement calls for durbin industries to pay
Reference No:- TGS01513828

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)