Using an example, explain how an interest swap works.
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
An interest rate swap involves exchanging variable interest rates for fixed interest ...View the full answer
Answered By
Pharashram rai
i am highly creative, resourceful and dedicated freelancer an excellent record of successful classroom presentations and writing . I have more than 4 years experience in tutoring students especially by using my note making strategies and engineering field . Especially adept at teaching methods of maths and writing , and flexible teaching style with the willingness to work beyond the call of duty. Committed to ongoing professional development and spreading the knowledge within myself to the blooming ones to make them fly with .
4.80+
65+ Reviews
270+ Question Solved
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Question Posted:
Students also viewed these Accounting questions
-
Explain how an interest rate swap can be viewed as either a series of forward rate agreements, a pair of bond transactions, or a pair of option agreements. To make your description more precise, take...
-
Explain how an interest rate swap is mapped into a portfolio of zero-coupon bonds with standard maturities for the purposes of a VaR calculation.
-
Explain how an interest rate swap is a special case of a currency swap?
-
Below is the comparative income statement of Variline, Inc. Requirements 1. Prepare a horizontal analysis of the comparative income statement of Variline, Inc. Round percentage changes to the nearest...
-
A. Describe reasons for hesitancy in delivering bad news and the impact of the mum effect. B. Explain how delivering bad-news messages impacts credibility. C. Describe the criteria for evaluating...
-
Why is diversification important in risk management?
-
There is some evidence that "young blood" might improve the health, both physically and cognitively, of elderly people (or mice). Exercise 2.69 on page 75 introduces one study in which old mice were...
-
Procter Company owns 90% of the outstanding stock of Silex Company. On January 1, 2011, Silex Company sold land to Procter Company for $350,000. Silex had originally purchased the land on June 30,...
-
The UPS Strike of 1996 Win-Lose Negotiation (case study) 1.This was a distributive negotiation. Based on in-class discussion and readings, what are the reasons that this was a distributive situation?...
-
Buckeye Incorporated had the following trial balance at the beginning of November. The following transactions occur in November. November 1 Issue common stock in exchange for $13,000 cash. November 2...
-
Why might an option be preferred over a futures contract?
-
Millikin Corporation decided to hedge two transactions. The first transaction is a forecasted transaction to buy 500 tons of inventories in 60 days. The company was concerned that selling prices...
-
Kamal Enterprises Ltd., a garment manufacturer in Mumbai, India, is negotiating to purchase a fully automated sewing machine. This machine can be programmed to sew and is expected to reduce...
-
As of December 31, salaries of $9,000 are earned by employees but not yet paid. The company has earned (but not recorded) $950 of interest revenue for the year ended December 31. The interest payment...
-
Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system...
-
The Autopartes de Nuevo Len company sold spare parts for a vehicle for a value of 350,000 and financed the invoice amount for 6 months at a rate of 20% per year. 1 month before the expiration they...
-
Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equaling $130800 per year, and its accounting firm has determined the contribution margin ratio on each...
-
Given the following data and using the pure premium ratemaking method, calculate the insurance rate (rounded). Incurred losses $750,000 Earned exposure units 12,500 Fixed expenses per exposure unit...
-
Consider a boundary layer growing along a thin flat plate. This problem involves the following parameters: boundary layer thickness , downstream distance x, freestream velocity V, fluid density , and...
-
Why do bars offer free peanuts?
-
Peg Corporation owns 90 percent of the voting stock of Sup Corporation and 25 percent of the voting stock of Ell Corporation. The 90 percent interest in Sup was acquired for $18,000 cash on January...
-
The accountant for Pil Corporation collected the following information that he thought might be useful in the preparation of the companys consolidated statement of cash flows (in thousands): Cash...
-
Comparative consolidated financial statements for Pes Corporation and its 90 percent-owned subsidiary, Sun Corporation, at and for the years ended December 31 are as follows: REQUIRED: Prepare a...
-
The purpose of this assignment is to better understand what the important pieces of the Linux/Unix operating system that you might want to prioritize reviewing when you are doing a forensic...
-
What is the function of the Helix system? What are the benefits of this tool? How does it work in terms of digital evidence collection? How do you get evidence of Unix, Linux, and Mac OS operating...
-
Analyzing revenue, expense, and withdrawal transactions into debit and credit parts Use the chart of accounts for Hals Marketing Services given in Application Problem 2-2. Transactions: Mar. 25. Sold...
Study smarter with the SolutionInn App