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If Rcc = 3.25% and the Fair 360 rate is 3.2184% and the bank sets their rate at 2.7184%, what is the present value of
If Rcc = 3.25% and the Fair 360 rate is 3.2184% and the bank sets their rate at 2.7184%, what is the present value of the transaction where the first cash flow is -15,000,000 and the second cash flow is 15,101,938.41?
Extra Info: Maturity 1 @ days = 360 and zero rate = 2% and Maturity 2 @ days = 450 and zero rate = 2.25%
The Answer is -18,237.03 for the present value of the transaction, I am wondering how he got to that answer. Thanks!
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