None 5. Find the swap rate of 1.5-year plain vanilla swap 3 months after initiation with the followingcharacteristics: N = $100, semi-annual payments, and price is $0.4044. The floating leg isreferenced to the 6-month LIBOR, which was at 5% 3 months ago.TZ(O,T)0.250.98400.50.97300.750.965010.94401.250.93901.50.9340a. 4.9%b. 4.7%c. 4.8%d. 5.1%e. 5.0%

Given that the present value of the fixed leg is $0.4044, we can set up the equation:0.4044 = (0.5 *…

Answered: 5. Find the swap rate of 1.5-year plain…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

plase help with this
If $4,000 is borrowed today and $8,955 is paid back in 10 years, what interest rate compounded annually has been earned? % Round entry to one decimal place. Tolerance is ±0.2.
A plain vanilla interest rate swap is written on a notional principal of €100m. The swap pays 3.6% per annum in return for the 3-month LIBOR. Payments are made every 6 months and the swap has 10 months remaining to maturity. The 3-month LIBOR 2 months ago was 3.2% per annum. The swap rate for all maturities is currently 3.8% with continuous compounding. What is the value, in Euros, of the swap to the party paying floating? a. -119,195.16 b. 1,941,376 c. 82,477.03 d. 83,001.04 e. -82,477.00
(Please do the natural calculation) Because of peso devaluation, a car costing P175,000 is to be purchased through a finance company instead of paying cash. If the buyer is required to pay P40.000 as down payment and P4.320 each month for four years, what is the effective interest rate in the diminishing balance?
Today an investor withdraw P50,000.00 representing the accrued amount of his investment that matured. If he invests at 10% semi-annually for 10 years, how much did he invest in pesos? P18,750 P18,845 P19,700 P17,600
Sandra has just signed a 7-year lease for her new business. The full annual lease amount is due at the beginning of every year and such cash flows have been agreed to be 17030 dollars now and the subsequent payments to increase by 4% per year until maturity. Given that the prevailing average market interest rate is 8% per year compounded monthly, compute the present value of this financial asset. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas) The answer is 105913.82, I'm just not sure how to get there.
An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on the second year, P9,000 on the third year, P8,500 on the fourth year. Determine the equivalent present worth of the debt if interest is 0.16. Note: Interest is already shown in decimal form. Do not round in between solution and no need to put UOM. Final answer round to the nearest WHOLE NUMBER.
Your Uncle Jimbo is willing to lend you $300 so you can buy a textbook. However, he expects $350 by the end of the week. a) What is the nominal rate? b) What is the effective annual rate?
42 years ago the maximum earnings of a worker subject to Social Security tax (SST) was $11,000. The maximum earnings subject to SST now is $117,200. What compound annual increase has been experienced over this 42-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time? The compound annual increase in SST over 42 years is %. (Round to two decimal places.) The increase in SST over 42 years is the 3% annual increase in the consumer price index.
Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.11 per annum. What is the equivalent uniform deposit for the uniform gradient only? Note: Interest is already shown in decimal form. Do not round in between solution. Final answer round to the nearest WHOLE NUMBER.
You are interested in purchasing a bond from Swiss international. The bond had a 20 year maturity when it was issued, which was 3 years ago. Its face value was $1,000. The bond pays quarter interest at an 0.12 coupon rate. The bond currently trades at a price of $700, what is the YTM
If, in five years, there were 30 employees, 18 being union members, all still making $20,000 per annum, and management negotiated with the union and agreed to the 12%, but with a choice between either a front-end loaded two-year deferred payment increase with 8% in the first year or a two-year even distribution increase. Which of the two should be accepted? (show calculations, not just final answers)

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS