Sppose the 6-m libor rates were 57 on 612013 and 6 on


1. Calculate the present value of $100 in 7 years using 9.8% interest rate with continuous compounding.

2. On 6/1/2013, you entered into a semiannual interest rate swap contract, where you pay a fixed rate of 6.2% per annum and receive 6-m LIBOR on a principal amount of $1,000,000. Suppose the 6-m LIBOR rates were 5.7% on 6/1/2013 and 6% on 12/1/2013. What is the net cash flow of the swap contract on 12/1/2013?

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Sppose the 6-m libor rates were 57 on 612013 and 6 on
Reference No:- TGS0612287

Expected delivery within 24 Hours