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A company wants to raise a project with total cost of 15 cr. They require this amount on l Feb 2020. On 1 Aug 2019
A company wants to raise a project with total cost of 15 cr. They require this amount on l" Feb 2020. On 1" Aug 2019 they are of the opinion that interest rates may increase and in market only floating rate loans are available. So, they decided to lock rates before hand by entering into FRA contracts, for a period of 2 yrs. So they contacted with an FRA dealer to lock the rates. RR is SBOR + 130. The contract details are as under:- (10 Marks) Date 1/8/19 1/2/20 18/20 12/21 1/8/21 SIBOR 10 9.2 9.7 8.9 10.7 FRA 6*12 12*18 18*24 24030 AR 11.2 10.5 11 11.40 A company wants to raise a project with total cost of 15 cr. They require this amount on l" Feb 2020. On 1" Aug 2019 they are of the opinion that interest rates may increase and in market only floating rate loans are available. So, they decided to lock rates before hand by entering into FRA contracts, for a period of 2 yrs. So they contacted with an FRA dealer to lock the rates. RR is SBOR + 130. The contract details are as under:- (10 Marks) Date 1/8/19 1/2/20 18/20 12/21 1/8/21 SIBOR 10 9.2 9.7 8.9 10.7 FRA 6*12 12*18 18*24 24030 AR 11.2 10.5 11 11.40
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