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2. Consider a currency swap in which the domestic party pays a fixed rate in the...
A US company enters into a currency swap in which pays a fixed rate of 5.5%...
A US company enters into a currency swap in which pays a fixed rate of 5.5% in euros and the counterparty pays a fixed rate of 6.75% in dollars. The notional principals are $100 million and €116.5 million. Payments are made semi-annually and on the basis of 30 days per month and 360 days per year. Calculate the final exchange of payments that the US company receives from its counterparty. [Note: let us assume the last semi-annual payment is included...
6. Find the upcoming interest payments in a currency swap in which party A pays U.S. dollars at a fixed rate of 5 perce...
6. Find the upcoming interest payments in a currency swap in which party A pays U.S. dollars at a fixed rate of 5 percent p.a. on a notional amount of $50 million and party B pays Swiss francs at a fixed rate of 4 percent p.a. on a notional amount of SF35 million. Payments are annual under the assumption of 360 days in a year, and there is no netting. A. party A pays $2,500,000, and party B pays SF1,400,000...
Consider the following swap. Party A will pay after 6 months (182 days) a fixed rate...
Consider the following swap. Party A will pay after 6 months (182 days) a fixed rate 7.50 percent per annum on a semiannual basis, and receives from Party B LIBOR + 40 basis points. The current six-month LIBOR rate is 6.75 percent per annum. The notional principal is 50 million dollars. 2) a) Compute the fixed and floating rate payments. 2) b) What is the net payment and which party makes it?
16. A U.S. corporation is considering entering into a currency swap that will call for the...
16. A U.S. corporation is considering entering into a currency swap that will call for the firm to pay dollars and receive British pounds. The dollar notional amount will be $35 million. The swap will call for semiannual payments using the adjustment 180/360. The exchange rate is $1.60. The term structures of dollar LIBOR and pound LIBOR are as follows: 1 Term 90 da 180 da Da ys 180 360 540 720 Dollar LIBOR (%) 7.00 7.25 7.45 7.55 Pound...
Consider the following fixed-for-fixed currency swap in Euros and British pounds. The notional principals are GBP67,914,000...
Consider the following fixed-for-fixed currency swap in Euros and British pounds. The notional principals are GBP67,914,000 and EUR63,000,000, and the GBP rate is 5.50% while the EUR rate is 3.75%. Payments are made semiannually, and the current exchange rate is GBP1.0780/EUR. What are the interest payments each period? a. EUR1,732,500; GBP1,273,388 b. EUR1,273,388; GBP3,465,000 c. EUR1,181,250; GBP1,181,250 d. EUR1,867,635; GBP1,181,250 e. EUR1,181,250; GBP1,867,635
1 Netflix Co. that has been floating rate notes now believes that interese rise I decides...
1 Netflix Co. that has been floating rate notes now believes that interese rise I decides to protect itself nainst this possibility by entering into an in rate swap with a dealer. In this swap, the notional principal is $80 million and the company will pay a fixed rate of 5.5 percent and receive LIBOR. The current LIROU is 5 percent. Calculate the first payment and indicate which party (Netflix or the dealer) prys which Assume that payments will be...
4. A French wine maker is considering a currency swap that will call for the firm...
4. A French wine maker is considering a currency swap that will call for the firm to pay dollars and receive Euros. The dollar notional principal will be $100 million. The swap calls for semiannual payments with a 180/360 adjustment. The current exchange rate is $1.60/ The term structure of the dollar and Euro LIBOR on the day of swap initiation is as follows # of days until payment | Dollar LIBOR ( Euro LIBOR 180 360 540 720 7.00...
la) Under the terms of a currency swap, a company has agreed to receive a fixed...
la) Under the terms of a currency swap, a company has agreed to receive a fixed interest rate of 10% per annum on an American dollar loan with a notional principal of $5 million. In exchange, the company will pay a fixed interest rate of 8% per annum on a Dutch Euro Loan with a notional principal of €2.5 million. Net interest payments are exchanged every six months. The swap has a remaining life of thirteen months. The current interest...
Consider the following information about an interest rate swap: two-year term, semiannual payment, fixed rate =...
Consider the following information about an interest rate swap: two-year term, semiannual payment, fixed rate = notional USD 10 million. Calculate the net coupon exchange for the first period if LIBOR is 5% at the beginning of the period and 5.5% at the end of the period Q2. 6%, floating rate = LIBOR + 50 basis points, A. Fixed-rate payer pays USD 0 B. Fixed-rate payer pays USD 25,000 C. Fixed-rate payer pays USD 50,000 D. Fixed-rate payer receives USD...
Some time ago, a multinational company entered into a currency swap in which it pays 2.8%...
Some time ago, a multinational company entered into a currency swap in which it pays 2.8% on $17 million USD and receives 3.8% on 13 million Euros, both rates are semi-annually compounded. There are three annual payments left, where the first payment is after one year from now, and the current exchange rate of the one Euro is $1.6 USD. If the USD OIS is 2.5% and Euro OIS is 3.5% (both are continuously compounded), what is the value of...
6. Find the upcoming interest payments in a currency swap in which party A pays U.S. dollars at a fixed rate of 5 percent p.a. on a notional amount of $50 million and party B pays Swiss francs at a fixed rate of 4 percent p.a. on a notional amount of SF35 million. Payments are annual under the assumption of 360 days in a year, and there is no netting. A. party A pays $2,500,000, and party B pays SF1,400,000...
16. A U.S. corporation is considering entering into a currency swap that will call for the firm to pay dollars and receive British pounds. The dollar notional amount will be $35 million. The swap will call for semiannual payments using the adjustment 180/360. The exchange rate is $1.60. The term structures of dollar LIBOR and pound LIBOR are as follows: 1 Term 90 da 180 da Da ys 180 360 540 720 Dollar LIBOR (%) 7.00 7.25 7.45 7.55 Pound...
Consider the following fixed-for-fixed currency swap in Euros and British pounds. The notional principals are GBP67,914,000 and EUR63,000,000, and the GBP rate is 5.50% while the EUR rate is 3.75%. Payments are made semiannually, and the current exchange rate is GBP1.0780/EUR. What are the interest payments each period? a. EUR1,732,500; GBP1,273,388 b. EUR1,273,388; GBP3,465,000 c. EUR1,181,250; GBP1,181,250 d. EUR1,867,635; GBP1,181,250 e. EUR1,181,250; GBP1,867,635
1 Netflix Co. that has been floating rate notes now believes that interese rise I decides to protect itself nainst this possibility by entering into an in rate swap with a dealer. In this swap, the notional principal is $80 million and the company will pay a fixed rate of 5.5 percent and receive LIBOR. The current LIROU is 5 percent. Calculate the first payment and indicate which party (Netflix or the dealer) prys which Assume that payments will be...
4. A French wine maker is considering a currency swap that will call for the firm to pay dollars and receive Euros. The dollar notional principal will be $100 million. The swap calls for semiannual payments with a 180/360 adjustment. The current exchange rate is $1.60/ The term structure of the dollar and Euro LIBOR on the day of swap initiation is as follows # of days until payment | Dollar LIBOR ( Euro LIBOR 180 360 540 720 7.00...
la) Under the terms of a currency swap, a company has agreed to receive a fixed interest rate of 10% per annum on an American dollar loan with a notional principal of $5 million. In exchange, the company will pay a fixed interest rate of 8% per annum on a Dutch Euro Loan with a notional principal of €2.5 million. Net interest payments are exchanged every six months. The swap has a remaining life of thirteen months. The current interest...
Consider the following information about an interest rate swap: two-year term, semiannual payment, fixed rate = notional USD 10 million. Calculate the net coupon exchange for the first period if LIBOR is 5% at the beginning of the period and 5.5% at the end of the period Q2. 6%, floating rate = LIBOR + 50 basis points, A. Fixed-rate payer pays USD 0 B. Fixed-rate payer pays USD 25,000 C. Fixed-rate payer pays USD 50,000 D. Fixed-rate payer receives USD...
Some time ago, a multinational company entered into a currency swap in which it pays 2.8% on $17 million USD and receives 3.8% on 13 million Euros, both rates are semi-annually compounded. There are three annual payments left, where the first payment is after one year from now, and the current exchange rate of the one Euro is $1.6 USD. If the USD OIS is 2.5% and Euro OIS is 3.5% (both are continuously compounded), what is the value of...
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