5. Chrysler LLC. Chrysler LLC, the now privately held company sold off by DaimlerChrysler, must pay floating
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5. Chrysler LLC. Chrysler LLC, the now privately held company sold off by DaimlerChrysler, must pay floating rate interest three months from now. It wants to lock in these interest payments by buying an interest rate futures contract. Interest rate futures for three months from now settled at 93.07, for a yield of 6.93% per annum.
a. If the floating interest rate three months from now is 6.00%, what did Chrysler gain or lose?
b. If the floating interest rate is 8.00% three months from now, what did Chrysler gain or lose?
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Related Book For 
Fundamentals Of Multinational Finance
ISBN: 9780321541642
3rd Edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
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