b) AppleZar Berhad and TimeXX Berhad enter into an interest rate swap trading as the fixed...
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b) AppleZar Berhad and TimeXX Berhad enter into an interest rate swap trading as the fixed payer and floating rate payer, respectively. The notional principal of the IRS is RM5 million for 5-year maturity at the reset intervals of 6 months. The fixed rate payer will pay 10.00 percent per annum and the floating rate payer will pay 6-month KLIBOR plus 1.00 percent. Estimate the interest amount of each party and the netted cash flow to be paid if the reference rate settles at each of the following rate on the reset interval. 9.50 percent i) ii) 8.00 percent (8 marks) (7 marks) b) AppleZar Berhad and TimeXX Berhad enter into an interest rate swap trading as the fixed payer and floating rate payer, respectively. The notional principal of the IRS is RM5 million for 5-year maturity at the reset intervals of 6 months. The fixed rate payer will pay 10.00 percent per annum and the floating rate payer will pay 6-month KLIBOR plus 1.00 percent. Estimate the interest amount of each party and the netted cash flow to be paid if the reference rate settles at each of the following rate on the reset interval. 9.50 percent i) ii) 8.00 percent (8 marks) (7 marks)
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To calculate the interest amounts and netted cash flow for the interest rate swap we need to consider the following information Fixed Rate 1000 per an... View the full answer
Related Book For
Investments
ISBN: 978-0071338875
8th Canadian Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
Posted Date:
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