Question
Firm A buys CDS from AIG. The notional amount is 1 million USD. The reference entity is firm B. The swap premium is 3%, payable
Firm A buys CDS from AIG. The notional amount is 1 million USD. The reference entity is firm B. The swap premium is 3%, payable at the end of each quarter. Suppose firm B defaults on January31. The current price of firm Bs bond is $200 (out of $1,000 par). The day count convention is act/360.
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What actions each party needs to do if cash settlement? For cash flows, please write down the numbers.
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What actions each party needs to do if physical settlement? For cash flows, please write down the numbers.
Answer:
2. Brian just bought an apartment in Manhattan which cost $ 2 million. The down payment was 50% and the balance of his mortgage was $1 million. Borrowing interest rate is 5%. The term is 15 years.
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What is his monthly payment?
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How much is the interest payment for the first month?
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How much is the remaining principal in the end of the first month?
Answer:
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Audit Criteria For Electronic Document Management Processes And Associated IT Solutions
Authors: Alexander D Balzer, Dr Klaus-Peter Elpel, Volker Feist
5th Edition
3932898281, 978-3932898280
