Answer the following questions from the premier foods interest rate swaps case study

1. What general information can we extract from Premiers financial statements?
2. What are interest rates swaps and why do firms issue them?
3. What is the value to Premier of its fixed/floating short-term interest rate swaps?
4. What are interest rate caps and floors? What motivates a firm to buy a cap? To sell a floor? Why do you think these instruments are often issued in conjunction (i.e., a firm buys a cap and writes a floor, forming a collar), as in Premiers case?
5. What is the value of Premiers cap? What is the value of its floor? You will need to refer to the LIBOR swap curve and the LIBOR implied forward curve.
6. Should a hedge fund buy 5 percent of Premier?