Business, 30.04.2021 21:30 kawaiiblurainbow
Gotham Corp. issues a 7-year floating rate bond with a par value of $10 million to Bruce beginning of the year 2011. The bond has annual coupons based on one-year LIBOR rate. Five years later, Gotham Corp. hedges against rising interest rates by entering into a 2-year interest rate swap with Tony. On the same day, Bruce expects future interest rates to fall and enters into a 2-year interest rate swap with Peter. Both the swap agreements have notional amount of $10 million, and variable rates based on the one-year LIBOR rate. Six years from the time of the bond issuance, the LIBOR rate falls below the swap rate of both the interest rate swap agreements. Which of the following is TRUE?
a. Gotham Corp. is the receiver in the interest rate swap with Tony.
b. Bruce is a debtor of Gotham Corp.
с. Bruce is the payer in the Interest rate swap with Peter.
d. Peter's net swap payment in 2017 is positive.
e. The market value of the swap between Gotham Corp. and Tony at the beginning of 2017, from Tony's perspective is negative
Answers: 3
Business, 22.06.2019 00:50
cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units
Answers: 1
Business, 22.06.2019 19:00
In north korea, a farmer’s income is the same as a dentist’s income. in a country with a mixed or market economy, the difference between those two professions might be more than 5 times different. how can you explain the fact that individuals doing the same work in different countries do not earn comparable salaries?
Answers: 1
Business, 22.06.2019 20:00
Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:
Answers: 2
Business, 22.06.2019 20:00
Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?
Answers: 1
Gotham Corp. issues a 7-year floating rate bond with a par value of $10 million to Bruce beginning o...
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Chemistry, 29.04.2021 03:00
Engineering, 29.04.2021 03:00
Social Studies, 29.04.2021 03:00
Physics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00
Chemistry, 29.04.2021 03:00
Mathematics, 29.04.2021 03:00