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QUESTION 3 - 10 Marks Two companies have been o...




QUESTION 3 - 10 Marks Two companies have been offered the following borrowing rates per annum on a $25 million five year loan: FLOATING FIXED RATE Company A LIBOR + 0.1% 12.0% Company B LIBOR + 0.5% 13.5% Company A requires a floating rate loan; and Company B requires a fixed rate loan. Design a swap that will net a bank acting as an intermediary, 0.1% per annum and that will appear equally attractive to both companies.,thanks awiting for answer,hi tutor, In answer I don't understand that how " the floating rate market , a rate which is 0.5 % per annuam more than company A " . According to me it should be 0.4 % per annum as ( LIBOR + 0.5 % )- (LIBOR + 0.1% ) = 0.4 % It means whole answer will change. Please check and come back to me . I will appreciate for your quick prompt. Regards Raj kumar,I need to submit today , please answer with in 6 hour, I requested on 14.10.2011 for clarification and today is 17.10.2011. You had sufficient time. Awaiting for your answer. Your quick propmt will appreciated. Raj kumar,please your quick prompt need , today I have to submit this assignment we have still 4 hour please.,what is the right answer now. as per 0.4 % whole answer change. could you send me new answer to re-check. which have submitted on 17.10.2011. regards raj kumar,you have time till monday 24.10.2011,thanks


Paper#7140 | Written in 18-Jul-2015

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