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8. Complete the following table in relation to a borrower who issues $5 million (face value) worth of 90-day bank bills in a one-year bill
8. Complete the following table in relation to a borrower who issues $5 million (face value) worth of 90-day bank bills in a one-year bill facility and hedges its interest rate risk with a one- year interest rate swap with a swap rate of 3.25% p.a. Qtr BBSW Bill proceeds Swap settlement Effective rate F + settlement F 365 -1X sker + 1 +(marke xes) Q(Tswaprate Passw)xzas market 1 3.05% 2 3.25% 3 4.15% 4 5.20% 8. Complete the following table in relation to a borrower who issues $5 million (face value) worth of 90-day bank bills in a one-year bill facility and hedges its interest rate risk with a one- year interest rate swap with a swap rate of 3.25% p.a. Qtr BBSW Bill proceeds Swap settlement Effective rate F + settlement F 365 -1X sker + 1 +(marke xes) Q(Tswaprate Passw)xzas market 1 3.05% 2 3.25% 3 4.15% 4 5.20%
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