Question
Consider a $70 million semiannual-pay floating-rate equity swap initiated when the equity index is 1987 and 180-day LIBOR is 2.2%. After 90 days the index
Consider a $70 million semiannual-pay floating-rate equity swap initiated when the equity index is 1987 and 180-day LIBOR is 2.2%. After 90 days the index is at 2015, the 90-day LIBOR is 2.6%, the 180-day LIBOR is 2.8% and the 270-day LIBOR is 3.1%. What is the value of the swap to the equity-return payer?
| A. | $-596,331. | |
| B. | $673,446.. | |
| C. | $3,554,003. | |
| D. | -$673,446. |
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
13th Edition
0073524719, 9780073524719
