Question
In a plain vanilla swap, a firm will pay a floating rate (on the day of the deal it is 4.3%) to a dealer, who
In a plain vanilla swap, a firm will pay a floating rate (on the day of the deal it is 4.3%) to a dealer, who will pay the firm a fixed rate of 5.5%. The notional amount is $100,000,000 and semiannual payments are based on 30-day and 360-day year for both dealer and the firm. What is the initial net payment to the firm?
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solution There will be no initial internet price ie initial internet price i...
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
