Question: Regarding the case study called Rothmans Inc. The curious case of the interest rate swap, I have to answer this question : After examining the

Regarding the case study called Rothmans Inc. The curious case of the interest rate swap, I have to answer this question :

After examining the fair value calculation provided, what is the implications of using a different discount rate? Is the Guaranteed Investment Certificate (GIC) five-year rate from the Bank of Canada a suitable rate? Provide other examples of appropriate discount rates.

Course : Risk, ERM_EDHEC_RothmansCaseQuestion

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