Hi can you please explain how to get this answer. Thank you. K-Roo Ltd.'s US competitor took out an AUD 27 million, 5-year loan to finance its expansions inAustralia.However, it prefers to make its debt payments in USD and therefore wants to swap into a fixed-rate USD loan.Westpac quotes the following annualized rates on 5-year currency swaps:USD: 7.61% bid and 7.88% offered against the 6-month dollar LIBORAUD: 4.14% bid and 4.49% offered against the 6-month dollar LIBORIf the current AUD/USD spot rate is 1.69, what are the semi-annual cash flows associated with thedebt payments of a AUD 27m swap?You want to swap out of a AUD 27 mil loan and into a fixed-rate USD loan, and you can ignore theoff-setting LIBOR payments.a. USD 0.629467 mil payment to Westpac; receive AUD 0.558900 mil payment fromWestpacb. receive USD 0.629467 mil payment from Westpac; AUD 0.558900 mil payment toWestpacc. USD 1.258935 mil payment to Westpac; receive AUD 1.117800 mil payment from Westpacd. receive USD 1.258935 mil payment from Westpac; AUD 1.117800 mil payment to Westpace. USD 0.607899 mil payment to Westpac; receive AUD 0.558900 mil payment fromWestpac

To obtain loan from Westpac for USD, ask rate will apply = 7.88% p.a and to receive payments from…

Answered: ISD loan. pac quote

Business

Accounting

ISD loan. pac quote

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Read through the following short case, and then answer the questions that follow. a) What would you…

A: Budget: It is an estimate of various financial items for a defined period, say a year or less.…

Q: where is the excel sheet ,so i can see how you get the answer. I want to see the workings please

A: Excel Workings are provided in the solution in the form of Excel snip. One can use the formula…

Q: Use EMBG's adjusted trial balance to prepare EMBG's balance sheet for the current year-end. EMBG…

A: Definition: Balance sheet: To Know the financial position of the business balance sheet is prepared.…

Q: Thank you for your feedback. I accidentally asked this question twice and I got 2 different answers…

A: According to the given question, We are required to compute the variable overhead controllable…

Q: I'd like the 1st question answered please for problem 23

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Hi I need help with #22. I only need a, b and d. Thank you!

A: Answer a: Sales-Variable cost=Contribution margin170 - 90 = $80 Therefore, the contribution margin…

Q: hank you for the explanation. Could you also help with option 4-

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Please refer to pictures and help me with problem thanks!

A: Answer 1: Working note 1: Predetermined overhead rate=Estimated total manufacturing…

Q: Could you please explain the process by which you got these answers? I am trying to learn how to do…

A: Workings: Preparation of schedule of expected cash collections:

Q: Thank you so much this is very clea

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: May I ask what the words say for parts a, b, and g?

A: In equation method entry total asset side should be equal to total of liabilities and equity side.

Q: Could you explain without using the excel?

A: The face value of the bond is $1,000. The coupon rate is 2%. The period is 6 years. The interest…

Q: The solution above is incorrect. Would you be able to fully solve it, please? I have difficulty…

A: a) If LAB is organized LLCAnnual return before taxes = $660,000 x 13%…

Q: hi, can you please show me how to solve this without using excel? thank you

A: Variables in the question:Interest rate = 3.75% per year compounded quarterlyQuarterly means 4 times…

Q: . You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)…

A: Given, Amount deposited is P100 Number of years 5

Q: The following equation shows the transactions of Cotton Cleaning Service during May. The business is…

A: Income statement is one of the essential parts of the financial statement used for reporting the…

Q: 3. Assume you are a sales manager preparing to develop and implement a customer feedback system. How…

A: A customer feedback system is a procedure used by organisations to gather and examine client input…

Q: anger of failing. Why? Is the sky falling? What might be done to correct the situation? Use some of…

A: The money that the taxes is not the same money when receive later in life. Instead, Social Security…

Q: you!

A: The original question deals with preparation of amortisation schedule.

Q: Factors involved in communicating useful information is are: Multiple Choice Process by which the…

A: Effective communication of useful information involves several factors, which are interrelated and…

Q: want to know how to do the last two part.. thankssssss!

A: Prepare a statement of retained earnings for the year ended December 31, 2018 assuming net profit…

Q: Hi. That's the full details of the questions needed to be answer. I can't solve it and I hope you'll…

A: Partnership: It is a form of business under it two or more persons made a formal agreement with the…

Q: Please also do parts 4 and 5 while showing work so that way I can understand better. Thank you.

A: Solution 4: No, we would not recommend closing the North Store as there is net financial…

Q: solve all of them. I mentioned in my question to solve all the parts

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Please respond via a memo on your thoughts of the GAAP article bellow:

A: Accounting Principles- Accounting principles are the principles that are to be followed by an…

Q: return filers

A: Every person has to file taxes and pay them on time as designated by the tax authority. Failure to…

Question

Hi can you please explain how to get this answer. Thank you.

K-Roo Ltd.'s US competitor took out an AUD 27 million, 5-year loan to finance its expansions in
Australia.
However, it prefers to make its debt payments in USD and therefore wants to swap into a fixed-
rate USD loan.
Westpac quotes the following annualized rates on 5-year currency swaps:
USD: 7.61% bid and 7.88% offered against the 6-month dollar LIBOR
AUD: 4.14% bid and 4.49% offered against the 6-month dollar LIBOR
If the current AUD/USD spot rate is 1.69, what are the semi-annual cash flows associated with the
debt payments of a AUD 27m swap?
You want to swap out of a AUD 27 mil loan and into a fixed-rate USD loan, and you can ignore the
off-setting LIBOR payments.
a. USD 0.629467 mil payment to Westpac; receive AUD 0.558900 mil payment from
Westpac
b. receive USD 0.629467 mil payment from Westpac; AUD 0.558900 mil payment to
Westpac
c. USD 1.258935 mil payment to Westpac; receive AUD 1.117800 mil payment from Westpac
d. receive USD 1.258935 mil payment from Westpac; AUD 1.117800 mil payment to Westpac
e. USD 0.607899 mil payment to Westpac; receive AUD 0.558900 mil payment from
Westpac

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Would you please provide the answer for #4 as well? Thank you!
please help with the question that is attached as a picture. thanks
Im having an issue with this problem. Thank you!
Sorry, to bother you but I am not sure where you came up with these numbers. They don't seem to be the same numbers in the question. I guess I am just really confused. Thank you for your help.
Can you please solve questions 5-15 of the problem above. Thank you.
Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow ideas from gpt, but please do not believe its answer.Very very grateful!Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow ideas from gpt, but please do not believe its answer.Very very grateful!
Hi, Could you please show me how to solve this with formulas? not excel, I should have clarified. Thanks
Q1: Write an e-mail to technical support team of your college to retrieve your login credentials. In order to make your e- mail effective mention all the important details and reasons to prioritize your response
Which of the following are part of Kwan's "Simple & Effective way to End a Presentation?" Thank you Are there any questions? And that is (Your Subject) What I talked about was (Summarize key points) The first thing I want you to do when you leave here today is (Call to action) In conclusion.....