CMOS Chips is hedging a 20-year $19 million, 8% bond payable with a 20-year Interest rate swap and has designated the swap as a falt Value Hedge. The agreement called for CMOS to receive payment based on a 8% fixed Interest rate on a notional amount of $19 minion and to pay Interest based on a floating interest rate tied to LIBOR. The contract calls for cash settlement of the net interest amount on December 31 of each year. At December 31, 2021, the fair value of the derivative and of the hedged bonds has increased by $109,000 because interest rates declined during the reporting period. Required: 1-0. Does CMOS have an unrealized gain or loss on the derivative for the period? 1-b. Does CMOS have an unrealized gain or loss on the bonds? 1-c. Will earnings increase or decrease due to the hedging arrangement? 2. Suppose interest rates increased, rather than decreased, causing the fair value of both the derivative and of the hedged bonds to decrease by $109.000 e. Would CMOS have an unrealized gain or loss on the derivative for the period? b. Would CMOS have an unrealized gain or loss on the bonds c. Would earnings increase or decrease due to the hedging arrangement 3. Suppose the fair value of the bonds at December 31, 2021. ad increased by $138.000 rather than $109,000, with the additional increase in fotr value due to inwestors perceptions that the creditworthiness or CMOS WEG improving 6. Would CMOS have an unrealized gain or loss on the derivative for the period? b. Would CMOS have an unrealized gain or loss on the bonds c. Would eamings increase or decrease due to the hedging arrangement 4. Suppose the notional amount of the swap had been $million, Kather than the 9-19 million principal amount of the bonds. As a test December 31, 2021 the swap's fair valuehad incased by S2000 than $109.000 a. W MOS have an unrealized gain or loss on the cerative for the periode bi wo CMOS nave an unrealized gain ons on the bonds pel would earnings increase or decrease due to the medging arrangement SOS Corporation is an investor ang outchased all son of the bonds issued by CMOS as described in the original BOS is hedging its investment Cassed as se for sale with a gerinterest rate swap andinas designate adge The agreement galled for Boston hent based on a registrate on national on and to receive terest based on monested LOBORI a auld lasteaed oss on the team gence due to interest ratesvingende Baseifi realized naselben cu ade to the garage 5 119 OS DEMOS os desc situation above BIOS is hedging its Investment, classified as available for sale, with a 20-year interest rate swap and the swap as a fair value hedge. The agreement called for Bios to make payment based on a 8% fixed interest rate o amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR. a. Would BIOS have an unrealized galn or loss on the derivative for the period due to interest rates having declined b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Does CMOS have an unrealized gain or loss on the derivative for the period? De the bonds? Will earnings increase or decrease due to the hedging arrangement? CMOS have an unrealized gain or loss 1.a Does CMOS have an unrealized gain or loss on the derivative for the period 1-5. Does CMOS have an unrealized gain or loss on the bonds? 1:0 Will earnings increase or decrease due to the hedging arrangement? Required 2 > c. Would earnings increase or decrease due to the hedging arrangement? 5. Suppose Bios Corporation is an Investor having purchased all $19 million of the bonds issued by CMOS as described in the situation above. BIOS is hedging its investment, classified as available-for-sale, with a 20-year interest rate swap and has design the swap as a fair value hedge. The agreement called for BIOS to make payment based on a 8% fixed interest rate on a notiona amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR, a. Would BIOS have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required Suppose interest rates increased rather than decreased, causing the fair value of both the derivative and of the hedged bands to decrease by $109.000. Would CMOS have an unrealized gain or loss on the derivative for the period? Would CMOS have an unrealized gain or loss on the bonds? Would earnings increase or decrans due to the hedging arrangement? 2-1 Would CMOS have an unrealized gain or loss on the derivative for the cod 12. Would CMOs have an unrealized gain or loss on the bonds Would earnings increase or decrease due to the hedging rangement? ceae Heu beugmy is livesurent classified as available for sale, with a 20-year interest rate swap and has the swap as a fair value hedge. The agreement called for BIOS to make payment based on a 8% fixed Interest rate on am amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR n. Would Bios have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Suppose the fair value of the bonds at December 31, 2021, had increased by $138.000 rather than $109,000, with the additional increase in fair value due to investors' perceptions that the creditworthiness of CMOS was improving. Would CMOS have an unrealized gain or loss on the derivative for the period? Would CMOs have an unrealized gain or loss on the bonds? Would earnings increase or decrease due to the hedging arrangement? Show less ROO Would CMOS have an untea zegain or loss on the derivative for the period Would CMOS have an unrealized gain or ons on the bonda Would rings increase or decreaza due to the hedging aangaan? Rent4 WI, Having purchased all $19 million of the bonds issued by CMOS as described in t situation above. BIOS is hedging its Investment, classified as available for sale, with a 20-year interest rate swap and has des the swap as a fair value hedge. The agreement called for BIOS to make payment based on a 8% fixed Interest rate on a nouo amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR. a. Would BIOS have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings Increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Suppose the notional amount of the swap had been $21 million rather than the 519 million principal amount of the bonds. As result, st December 31, 2021, the swap's fair valuehad increased by 108,000 ather than $109,000. Would CMOS have an unrealized gain or loss on the derivative for the period? Would CMOS have an und gain or loss on the bonds? Would learning increase or decrease due to the hedging arrangement? Show less Weule CMOS have an unrealised gain or loss on the date for the series Would CMOS have an unrealed gain or loss on the bonda restart date TRESS . Would CMOS have an unrealized gain or loss on the bands? 2. Would earnings increase or decrease due to the hedging arrangement? Suppose the notional amount of the swap had been $21 million, rather than the $19 million principal amount of the bonds. As a eson, at December 31, 2021, the swap's fair value had increased by $138,000 rather than $109,000 Would CMOS have an unrealized gain or loss on the derivative for the period? 5. Would CMOS have an unrealized gain or loss on the bonds? . Would earrings increase or decrease due to the hedging arrangement? 5. Suppose BIOS Corporation is an investor, having purchased all $19 million of the bonds issued by CMOS as described in the original Stuation above. BIOS is hedging its investment, classified as available for sale, with a 20-year interest rate swap and has designated the swap as a folt value hedge. The agreement called for BIOS to make payment based on a 8% ed interest rate on a notional amount of $19 million and to receive Interest based on a floating interest rate tied to LIBOR Would BIOS have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? . Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required: Required 2 Regards Required 4 Refreds OG BIO Corporation is an investor having purchased all s19 million of the Banded by CMOS as described in the original situation above I hedon investment, cared as available for sale with 20-year interest rate and has noted the map Hoe hedge. The agreement called for TOS to make payment based on interest rate on a national amount of million and tolve internet based on Boating interest rate tied to LIBOR Would blo have an unteand gain or ons on the derivative for the period due to interesting on would do have an ere gain or for the lagd would earnings increase or decreto due to the hedging arrangement We avere gain on the device for the produto Yould have an unrealdean sorders due to the hoping Required CMOS Chips is hedging a 20-year $19 million, 8% bond payable with a 20-year Interest rate swap and has designated the swap as a falt Value Hedge. The agreement called for CMOS to receive payment based on a 8% fixed Interest rate on a notional amount of $19 minion and to pay Interest based on a floating interest rate tied to LIBOR. The contract calls for cash settlement of the net interest amount on December 31 of each year. At December 31, 2021, the fair value of the derivative and of the hedged bonds has increased by $109,000 because interest rates declined during the reporting period. Required: 1-0. Does CMOS have an unrealized gain or loss on the derivative for the period? 1-b. Does CMOS have an unrealized gain or loss on the bonds? 1-c. Will earnings increase or decrease due to the hedging arrangement? 2. Suppose interest rates increased, rather than decreased, causing the fair value of both the derivative and of the hedged bonds to decrease by $109.000 e. Would CMOS have an unrealized gain or loss on the derivative for the period? b. Would CMOS have an unrealized gain or loss on the bonds c. Would earnings increase or decrease due to the hedging arrangement 3. Suppose the fair value of the bonds at December 31, 2021. ad increased by $138.000 rather than $109,000, with the additional increase in fotr value due to inwestors perceptions that the creditworthiness or CMOS WEG improving 6. Would CMOS have an unrealized gain or loss on the derivative for the period? b. Would CMOS have an unrealized gain or loss on the bonds c. Would eamings increase or decrease due to the hedging arrangement 4. Suppose the notional amount of the swap had been $million, Kather than the 9-19 million principal amount of the bonds. As a test December 31, 2021 the swap's fair valuehad incased by S2000 than $109.000 a. W MOS have an unrealized gain or loss on the cerative for the periode bi wo CMOS nave an unrealized gain ons on the bonds pel would earnings increase or decrease due to the medging arrangement SOS Corporation is an investor ang outchased all son of the bonds issued by CMOS as described in the original BOS is hedging its investment Cassed as se for sale with a gerinterest rate swap andinas designate adge The agreement galled for Boston hent based on a registrate on national on and to receive terest based on monested LOBORI a auld lasteaed oss on the team gence due to interest ratesvingende Baseifi realized naselben cu ade to the garage 5 119 OS DEMOS os desc situation above BIOS is hedging its Investment, classified as available for sale, with a 20-year interest rate swap and the swap as a fair value hedge. The agreement called for Bios to make payment based on a 8% fixed interest rate o amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR. a. Would BIOS have an unrealized galn or loss on the derivative for the period due to interest rates having declined b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Does CMOS have an unrealized gain or loss on the derivative for the period? De the bonds? Will earnings increase or decrease due to the hedging arrangement? CMOS have an unrealized gain or loss 1.a Does CMOS have an unrealized gain or loss on the derivative for the period 1-5. Does CMOS have an unrealized gain or loss on the bonds? 1:0 Will earnings increase or decrease due to the hedging arrangement? Required 2 > c. Would earnings increase or decrease due to the hedging arrangement? 5. Suppose Bios Corporation is an Investor having purchased all $19 million of the bonds issued by CMOS as described in the situation above. BIOS is hedging its investment, classified as available-for-sale, with a 20-year interest rate swap and has design the swap as a fair value hedge. The agreement called for BIOS to make payment based on a 8% fixed interest rate on a notiona amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR, a. Would BIOS have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required Suppose interest rates increased rather than decreased, causing the fair value of both the derivative and of the hedged bands to decrease by $109.000. Would CMOS have an unrealized gain or loss on the derivative for the period? Would CMOS have an unrealized gain or loss on the bonds? Would earnings increase or decrans due to the hedging arrangement? 2-1 Would CMOS have an unrealized gain or loss on the derivative for the cod 12. Would CMOs have an unrealized gain or loss on the bonds Would earnings increase or decrease due to the hedging rangement? ceae Heu beugmy is livesurent classified as available for sale, with a 20-year interest rate swap and has the swap as a fair value hedge. The agreement called for BIOS to make payment based on a 8% fixed Interest rate on am amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR n. Would Bios have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Suppose the fair value of the bonds at December 31, 2021, had increased by $138.000 rather than $109,000, with the additional increase in fair value due to investors' perceptions that the creditworthiness of CMOS was improving. Would CMOS have an unrealized gain or loss on the derivative for the period? Would CMOs have an unrealized gain or loss on the bonds? Would earnings increase or decrease due to the hedging arrangement? Show less ROO Would CMOS have an untea zegain or loss on the derivative for the period Would CMOS have an unrealized gain or ons on the bonda Would rings increase or decreaza due to the hedging aangaan? Rent4 WI, Having purchased all $19 million of the bonds issued by CMOS as described in t situation above. BIOS is hedging its Investment, classified as available for sale, with a 20-year interest rate swap and has des the swap as a fair value hedge. The agreement called for BIOS to make payment based on a 8% fixed Interest rate on a nouo amount of $19 million and to receive Interest based on a floating Interest rate tied to LIBOR. a. Would BIOS have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? c. Would earnings Increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Suppose the notional amount of the swap had been $21 million rather than the 519 million principal amount of the bonds. As result, st December 31, 2021, the swap's fair valuehad increased by 108,000 ather than $109,000. Would CMOS have an unrealized gain or loss on the derivative for the period? Would CMOS have an und gain or loss on the bonds? Would learning increase or decrease due to the hedging arrangement? Show less Weule CMOS have an unrealised gain or loss on the date for the series Would CMOS have an unrealed gain or loss on the bonda restart date TRESS . Would CMOS have an unrealized gain or loss on the bands? 2. Would earnings increase or decrease due to the hedging arrangement? Suppose the notional amount of the swap had been $21 million, rather than the $19 million principal amount of the bonds. As a eson, at December 31, 2021, the swap's fair value had increased by $138,000 rather than $109,000 Would CMOS have an unrealized gain or loss on the derivative for the period? 5. Would CMOS have an unrealized gain or loss on the bonds? . Would earrings increase or decrease due to the hedging arrangement? 5. Suppose BIOS Corporation is an investor, having purchased all $19 million of the bonds issued by CMOS as described in the original Stuation above. BIOS is hedging its investment, classified as available for sale, with a 20-year interest rate swap and has designated the swap as a folt value hedge. The agreement called for BIOS to make payment based on a 8% ed interest rate on a notional amount of $19 million and to receive Interest based on a floating interest rate tied to LIBOR Would BIOS have an unrealized gain or loss on the derivative for the period due to interest rates having declined? b. Would BIOS have an unrealized gain or loss on the bonds? . Would earnings increase or decrease due to the hedging arrangement? Complete this question by entering your answers in the tabs below. Required: Required 2 Regards Required 4 Refreds OG BIO Corporation is an investor having purchased all s19 million of the Banded by CMOS as described in the original situation above I hedon investment, cared as available for sale with 20-year interest rate and has noted the map Hoe hedge. The agreement called for TOS to make payment based on interest rate on a national amount of million and tolve internet based on Boating interest rate tied to LIBOR Would blo have an unteand gain or ons on the derivative for the period due to interesting on would do have an ere gain or for the lagd would earnings increase or decreto due to the hedging arrangement We avere gain on the device for the produto Yould have an unrealdean sorders due to the hoping Required