Spring Bank lend money to ABC company given the following terms: LOAN AGREEMENT TERMS: Loan Amount:...
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Spring Bank lend money to ABC company given the following terms: LOAN AGREEMENT TERMS: Loan Amount: Interest Rate (LIBOR +) Maturity/Term: CDS Contract Notional Amount = Years 0 1 2 100,000,000 million Given the risk of ABC, Spring Bank decided to enter a CDS agreement with an insurance company. The CDS terms are as follows: 3 CDS Rate 100,000,000 4.00% 3.00% 3.40% 3.75% 5 years 4 4.50% 5 5.50% Please calculate the total net Payoff profit/loss for Spring Bank. Spring Bank lend money to ABC company given the following terms: LOAN AGREEMENT TERMS: Loan Amount: Interest Rate (LIBOR +) Maturity/Term: CDS Contract Notional Amount = Years 0 1 2 100,000,000 million Given the risk of ABC, Spring Bank decided to enter a CDS agreement with an insurance company. The CDS terms are as follows: 3 CDS Rate 100,000,000 4.00% 3.00% 3.40% 3.75% 5 years 4 4.50% 5 5.50% Please calculate the total net Payoff profit/loss for Spring Bank.
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Answer rating: 100% (QA)
To calculate the total net payoff profitloss for Spring Bank in the CDS agreement we need to determine the payments made by Spring Bank as the protect... View the full answer
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
Posted Date:
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