Consider a 100 million equity swap with semiannual payments


Consider a $100 million equity swap with semiannual payments. When the swap is established, the underlying stock is at 1,215.52. One party pays a fixed rate of 5.5% based on the assumption of 30 days per month and 360 days per year. If the stock index is at 1,275.89 on the first payment date, calculate the net swap payment, indicating with party pays it. Show your work

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Financial Management: Consider a 100 million equity swap with semiannual payments
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