1) If 3m-Libor is 5%, what would be the settlement amount , the effective payment and rate...

Fantastic news! We've Found the answer you've been seeking!

Question:

1) If 3m-Libor is 5%, what would be the settlement amount , the effective payment and rate on the 25 mln loan ?

2) If 3m-Libor is 2.5%, what would be the settlement amount , the effective payment and rate on the 25 mln loan ?

Today 3m Libor quoted at 2,55-2,60%.

Company pays a Floating rate (Libor +0,3% ) on a 25 mln bank loan

Company Expects in 3 months from now an increase in Libor rate

36 FRA quoted by AB-bank at 2,62-2,66%

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

See More Books

Posted Date: Mar 02, 2024 02:48 AM

See More Questions

Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
"internet radios" for streaming audio, and personal video recorders and players. Describe design and evaluation processes that could be used by a start-up company to improve the usability of such...
Rich Jackson, a recent finance graduate, is planning to go into the wholesale building supply business with his brother, Jim, who majored in building construction. The firm would sell primarily to...
The income statement information for 2010 and 2011 of the Connor Company (a sole proprietorship) is as follows: Required Fill in the blanks labeled (a) through (g). All the necessary information is...
In the system shown, disk A is free to rotate about the horizontal rod OA. Assuming that shaft OC and disk B rotate with constant angular velocities 1 and 2, respectively, both counter clock wise,...
With reference to Exercise 4.8, find the variance of g(X) = 2X + 3. In exercise for 0
ZeeZee's Construction Company has the opportunity to select one of four projects (A, B, C, or D) or choose the null (do-nothing) alternative. Each project requires a single initial investment and has...
The management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data. Inventory,...
Criticism of the World Bank is generally on a diverse range of issues but they generally centre around concern about the approaches adopted by the World Bank in formulating their policies, and the...
Laboratory 7: List and String Review the related lecture note(s), and finish exercises below. 1. Write a Python program to create a list (named lab7.py): Create a list named myList and initialize it...
a. Identify and explain the potential type of threat to Fellowes and Associates independence in situations (1) and (2) above. b. What action should Fellowes and Associates take to eliminate the...
You have been assigned to audit the sales and accounts receivable balances of Coppero Engineering Ltd. for the year ended September 30, 2023. Coppero Engineering is a major manufacturer of steel...
If tariffs are already in place as a trade policy, why might a country choose to apply nontariff barriers also as another way to control the amount of trade that they conduct with other countries?
Ted Thomas, a single taxpayer has the following transactions in 2018: a. What is Ted's net capital gain or loss? b. If your answer to (a) was a net capital gain, what is the maximum rate at which it...
Explain why Tania Fellowes should have reservations about accepting the TLCL engagement to provide an opinion with respect to the laser machines. Make appropriate reference to fundamental ethical...
US Manufacturer sells USD$500,00.00 of electrical appliances to a buyer in Japan on Terms Free Alongside Ship (FAS). Buyer put down 30% deposit for the purchase. Then the buyer hires A.L.S. Freight...
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
If investors buy properties based on expected future benefits, what is the rationale for appraising a property without making any income or resale price projections?
Explain the difference between a buyer assuming the mortgage and taking title subject to the mortgage.
An investor has owned a property for 15 years, the value of which is now to $200,000. The balance on the original mortgage is $100,000 and the monthly payments are $1,100 with 15 years remaining. He...
Explain why the business objectives of owners and managers are likely to diverge. How might owners attempt to ensure that managers act in their interests and not in the managers own interests?
1. In what ways did the defence industries respond to the ending of the Cold War? 2. Using an Internet search, find out how the defence and security industries have responded to the threat of...
What is the Standard Industrial Classification (SIC)? In what ways might such a classification system be useful? Can you think of any limitations or problems such a system might have over time?

1) If 3m-Libor is 5%, what would be the settlement amount , the effective payment and rate...

Question:

Expert Answer:

To calculate the settlement amount effective payment and rate on the 25 million loan we need to cons... View the full answer

Real Estate Finance and Investments

Students also viewed these finance questions