What is the value of the swap to the party receiving, Finance Basics

+44 141 628 6080
[email protected]

What is the value of the swap to the party receiving

Problem

A semi-annual pay interest rate swap where the fixed rate is 5.2% (with semi-annual compounding) has a remaining life of nine months. The six-month LIBOR rate observed three months ago was 4.9% with semi-annual compounding. Today's three and nine month LIBOR rates are 5.9% and 6.2% (continuously compounded) respectively. If the swap has a principal value of $15,000,000, what is the value of the swap to the party receiving a fixed rate of interest?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: What is the value of the swap to the party receiving

Reference No:- TGS03224389

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Why self-esteem is most important

Write a 50 to 75 word reflection on what you have learned in the "Psychology of Learning" Course and include why "Self-esteem" is most important

Q : What ethical issues arise from working with children

What are the primary interventions and methods human service professionals use to prevent child abuse and neglect in a family setting?

Q : Advantages and disadvantages for teaching generalization

Discuss the advantages and disadvantages for teaching generalization when students are included in general education classroom settings.

Q : Explain each of the cash inflows or outflows in new designs

Explain each of the cash inflows or outflows in New Designs (Pty) Ltd's Statement of Cash Flows above.

Q : What is the value of the swap to the party receiving

If the swap has a principal value of $15,000,000, what is the value of the swap to the party receiving a fixed rate of interest?

Q : Describe the behavioral features and physiological symptoms

Describe the behavioral features and physiological symptoms (if applicable) associated with this disorder.

Q : Are cities better off to invest their money in other project

In other words, are cities better off to invest their money in other projects other than sport facilities and/or teams?

Q : Which models do you find fit therapeutic style

Of the family therapy theories and interventions, we've discussed in the course, which model or models do you find fit your own therapeutic style? Why?

Q : Describe how the loan structure for a multifamily apartment

Describe how the loan structure for a multifamily apartment might differ from that of a commercial office building or retail center?

1934914

Questions
Asked

3,689

Active Tutors

1445452

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Describe factors that increase the probability of fraud

Use. You. Own. Words. 1. List, and briefly describe, the three main factors that increase the probability of fraud

What are required to determine annual depreciable amount

Question: Which of the following are required to determine the annual depreciable amount for an investment property?

What amount of elige current year taxable income is

What amount of Elige's current year taxable income is allocated to Elige's S corporation short tax year based on the relative number of days

Statements about asking questions during a meeting

Which of the following statements about asking questions during a meeting is true? Question Answer

What is the quick ratio for picasso paint supply

It also has $50,000 in current liabilities and $75,000 in long-term liabilities. What is the quick ratio for Picasso's Paint Supply?

How company has adopted a new accounting method

Question: Your company has adopted a new accounting method, which will increase the volatility of the reported earnings

Describe their preferred influence strategies

Based on the documentary watched in class, how would you describe their preferred influence strategies?