Business, 14.11.2019 22:31 emmaogle2003
Summa corp. must pay floating rate interest three months from now on a loan of $1m. it wants to lock in these interest payments with an interest rate futures contract. interest rate futures for three months from now settled at 94.65, for a yield of 5.35% per annum.
a. should summa corp. buy or sell a futures contract?
b. if the floating-rate interest three months from now is 6.00%, what did summa gain or lose on the futures contract and on its overall position (loan + futures contract)?
cif the floating-rate interest three months from now is 5.00%, what did summa gain or lose on the futures contract and on its overall position (loan + futures contract)?
Answers: 1
Another question on Business
Business, 22.06.2019 09:50
Acar manufacturer uses new machines that automatically assemble an engine from parts fed to the system. the machine can regulate the speed ofassembly depending on the number of parts produced. which type of technology does this machine use? angenoem mense wat ons in matin en esta va ser elthe machine uses
Answers: 3
Business, 22.06.2019 13:30
Tom has brought $150,000 from his pension to a new job where his employer will match 401(k) contributions dollar for dollar. each year he contributes $3,000. after seven years, how much money would tom have in his 401(k)?
Answers: 3
Business, 22.06.2019 22:20
Which of the following is correct? a. a tax burden falls more heavily on the side of the market that is more elastic.b. a tax burden falls more heavily on the side of the market that is less elastic.c. a tax burden falls more heavily on the side of the market that is closer to unit elastic.d. a tax burden is distributed independently of the relative elasticities of supply and demand.
Answers: 1
Business, 23.06.2019 01:20
Petra contracted to paint bret’s house for $2,000. after beginning the job, petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells bret she wants another $500 to finish the job. bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. is bret legally obligated to pay the extra $500?
Answers: 2
You know the right answer?
Summa corp. must pay floating rate interest three months from now on a loan of $1m. it wants to lock...
Questions
Health, 03.08.2019 22:00
Spanish, 03.08.2019 22:00
English, 03.08.2019 22:00
Mathematics, 03.08.2019 22:00
History, 03.08.2019 22:00
Mathematics, 03.08.2019 22:00
History, 03.08.2019 22:00
