X will pay the swap bank annual payments on $10,000,000 with the coupon rate of 9.80%;...
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X will pay the swap bank annual payments on $10,000,000 with the coupon rate of 9.80%; in exchange the swap bank will pay to company X interest payments on 5,000,000 at a fixed rate of 10.5%. Y will pay the swap bank interest payments on 5,000,000 at a fixed rate of 12.80% and the swap bank will pay Y annual payments on $10,000,000 with the coupon rate of 12%. What is the value to the swap bank? Company X? Company Y? Borrowing Cost Borrowing Cost Company X Company Y $10% 10.5% $12% 13% What is the value to Company X? X will pay the swap bank annual payments on $10,000,000 with the coupon rate of 9.80%; in exchange the swap bank will pay to company X interest payments on 5,000,000 at a fixed rate of 10.5%. Y will pay the swap bank interest payments on 5,000,000 at a fixed rate of 12.80% and the swap bank will pay Y annual payments on $10,000,000 with the coupon rate of 12%. What is the value to the swap bank? Company X? Company Y? Borrowing Cost Borrowing Cost Company X Company Y $10% 10.5% $12% 13% What is the value to Company X?
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Related Book For
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans
Posted Date:
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