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3.2 . Citibank has $100 million fixed rate loans with maturity of 2 years. The loan is 4%. The LIBOR. Calculate the cash flow of
3.2 . Citibank has $100 million fixed rate loans with maturity of 2 years. The loan is 4%. The LIBOR. Calculate the cash flow of Citibank for next two years. 3.3. Tesla worries about the increase in interest rate. Tesla enters into a pay-fixed receive-floating plainvanilla interest rate swap with Citibank. Calculate the net cash flow of Tesla for next two years and total net cash flow (Do not consider time value of money). 3.4 Was this swap a good deal for Tesla or should they have let the rate float? Why or why not? 3.2 . Citibank has $100 million fixed rate loans with maturity of 2 years. The loan is 4%. The LIBOR. Calculate the cash flow of Citibank for next two years. 3.3. Tesla worries about the increase in interest rate. Tesla enters into a pay-fixed receive-floating plainvanilla interest rate swap with Citibank. Calculate the net cash flow of Tesla for next two years and total net cash flow (Do not consider time value of money). 3.4 Was this swap a good deal for Tesla or should they have let the rate float? Why or why not
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