Question
1) If 3m-Libor is 5%, what would be the settlement amount , the effective payment and rate on the 25 mln loan ? 2) If
1) If 3m-Libor is 5%, what would be the settlement amount , the effective payment and rate on the 25 mln loan ?
2) If 3m-Libor is 2.5%, what would be the settlement amount , the effective payment and rate on the 25 mln loan ?
Today 3m Libor quoted at 2,55-2,60%.
Company pays a Floating rate (Libor +0,3% ) on a 25 mln bank loan
Company Expects in 3 months from now an increase in Libor rate
36 FRA quoted by AB-bank at 2,62-2,66%
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
