Ali Company and Bill Company entered into a semi-annual pay plain vanilla interest rate swap with a nominal value of $8,000,000. Bill offered to pay Ali a fixed annual rate of 2.75% (with semi-annual compounding). The remaining life of the swap is nine months. Assume the six-month LIBOR rate observed three months ago was 2.6% with semi-annual compounding. Today's three and nine month LIBOR rates are 2.526% and 2.846% (with continuous compounding). The implied forward rate is 3.0287% with semi-annual compounding. What is the value of the swap to Bill Company using the FRA methodology? Do not round intermediate calculations.
A.$4,950
B.$2,009
C.-$1,407
D.$5,613
Ali Company and Bill Company entered into a semi-annual pay plain vanilla interest rate swap with a nominal value of $8,000,000. Bill offered to pay Ali a fixed annual rate of 2.75% (with semi-annual compounding). The remaining life of the swap is nine months. Assume the six-month LIBOR rate observed three months ago was 2.6% with semi-annual compounding. Today's three and nine month LIBOR rates are 2.526% and 2.846% (with continuous compounding). The implied forward rate is 3.0287% with semi-annual compounding. What is the present value of the net cash flow (or payoff) at nine months point to Bill Company?
A.$4,556
B.$4,913
C.$8,904
D.$10,913
Off-balance sheet financing usually is found in connection with O finance leases. O operating leases. O both finance and operating leases. O neither finance nor operating leases.iservation Salary Position Experience 87 $ 62 881 00 Non-Finance Less than 2 years 88 $ 75,791 00 Non-Finance More than 5 years 89 $ 61 680.00 Non-Finance Less than 2 years 90 $ 59.768.00 Finance More than 5 years 91 $ 56,568.00 Finance More than 5 years 92 $ 82 622.00 Non-Finance 2 to 5 years 93 $ 75.326.00 Non-Finance More than 5 years 94 $ 57.719.00 Finance More than 5 years 95 $ 57.366.00 Finance More than 5 years 96 $ 57.670.00 Finance Less than 2 years 97 $ 52 072 00 Finance Less than 2 years 98 $ 68.569.00 Non-Finance More than 5 years 99 $ 81 526.00 Non-Finance 2 to 5 years 100 $ 82.059.00 Non-Finance 2 to 5 years 101 $ 74.374.00 Non-Finance More than 5 years 102 $ 51 119.00 Finance Less than 2 years 103 $ 80.696.00 Non-Finance 2 to 5 years 104 $ 56.352.00 Finance Less than 2 years 105 $ 77 622.00 Non-Finance More than 5 years 106 $ 69.142.00 Non-Finance Less than 2 years 107 $ 67.603.00 Non-Finance More than 5 years 108 $ 60.561.00 Non-Finance Less than 2 years 109 $ 51,246.00 Finance 2 to 5 years 110 5 54.891.00 Finance Less than 2 years 111 $ 87.090.00 Non-Finance 2 to 5 years 112 $ 55.482 00 Finance More than 5 years 113 $ 53 464.00 Finance Less than 2 years 114 $ 58.568.00 Finance 2 to 5 years 115 $ 58,080.00 Finance More than 5 years 116 |$ 78.702.00 Non-Finance 2 to 5 years 117 $ 83.131.00 Non-Finance 2 to 5 years 118 |$ 57.788.00 Finance More than 5 years 119 $ 53,070.00 Finance 2 to 5 years 120 $ 60.259.00 Non-Finance Less than 2 years Using the data above, answer the questions below. 1 Calculate the mean and standard deviation by position and experience and in total, Use the table below to summarize your calculations. This summary will aid you in answering the other questions.Use the following information to answer the questions below. U.S. International Transactions 2017 Bureau of Economic Analysis Billion of dollars 2017 Current account Exports of goods and services and income receipts Exports of goods and services 2,332 Goods 1,551 Services 781 Primary income receipts 927 Investment income 920 Compensation of employees 7 Secondary income (current transfer) receipts 150 Imports of goods and services and income payments Imports of goods and services 2,900 Goods 2,362 Services 538 Primary income payments 710 Investment income 689 Compensation of employees 21 Secondary income (current transfer) payments 265 Capital account Capital transfer receipts and other credits 25 Financial account Net U.S. acquisition of financial assets excluding financial derivatives Direct investment assets 424 Portfolio investment assets 590 Other investment assets 200 Reserve assets -2 Net U.S. incurrence of liabilities excluding financial derivatives Direct investment liabilities 349 Portfolio investment liabilities 837 Other investment liabilities 402 Financial derivatives other than reserves, net transactions 26 Statistical discrepancy Statistical discrepancy a. What is the goods trade balance? (Numeric calculations required - Show your work) b. What is the current account balance?(Numeric calculations required - Show your work) c. Does the financial account equal the current account plus the capital account balance? (Numeric calculations required - Show your work) d. What is the statistical discrepancy? (Numeric calculations required - Show your work) e. Weigh the pros and cons of a large trade deficit.Question 2 1 pts Which of the TWO following statements are INCORRECT? E] Courts award damages for breach of contract to put the innocent party in a position as if the contract had been performed as far as money can do so. The innocent party must however take all reasonable steps to mitigate its losses. E] Courts award damages for breach of contract to put the innocent party in a position as if the contract had been performed as far as money can do so. [:1 Courts award damages for breach of contract to put the innocent party in a position as if the contract had been performed as far as money can do so, but any loss arising from the contract must be reasonably foreseeable. C] Courts award damages for breach of contract to put the innocent party in a position as if the contract had been performed as far as money can do so. The courts will also usually order the party in breach to perform its part of the contract. [:1 Courts award damages for breach of contract to put the innocent party in a position as if the contract had been performed as far as money can do so. The courts will not usually order the party in breach to perform its part of the contract. C] Courts award damages for breach of contract to put the innocent party in the position he or she was before the breach of contract occurred
