please solve all

Problems Easy Answers to odd-numbered problems appear in Appendix A. Problems 1-2 20-1 Zhao Automotive issues fixed-rate debt at a rate of 7.00%. Zhao agrees to an interest rate Swaps swap in which it pays LIBOR to Lee Financial, and Lee pays 6.8% to Zhao. What is Zhao's resulting net payment? 20-2 A Government of Canada bond futures contract has a settlement price of 91.50. What is the Futures implied annual yield? Intermediate Problems 3-4 20-3 What is the implied interest rate on a Government of Canada bond ($100,000) futures con- Futures tract that settled at 112.757 If interest rates increased by 1%, what would be the contract's new value? 20-4 Branger Ltd. has the choice of issuing floating-rate debt at LIBOR + 19 or fixed-rate debt Swaps at 6%. Likewise, Creeson Plastics can issue floating-rate debt at LIBOR + 2.5% or fixed-rate debt at 7.7%. Suppose Branger issues fixed-rate debt and Creeson issues floating-rate debt. The two companies are considering a swap where Branger will make LIBOR payments to Creeson in exchange for a fixed-rate payment of 5.1%. What are the net payments of Branger and Creeson if they engage in the swap? Is it better for Branger to issue fixed-rate debt and enter into the swap or to issue floating-rate debt? Is it better for Creeson to issue floating-rate debt and to enter into the swap or issue fixed-rate debt? What decision would each company Challenging make if the fixed-rate payment on the swap was 5.5%? Problems Easy Answers to add-numbered problems appear in Appendix A Problems 1-2 20-1 Zhao Automotive issues fixed-rate debt at a rate of 700 Zha swap in which it pays LIBOR o Lee Financial and tes 's toh resulting net payment? 20-2 A Government of Canada bond futures contract has a settlement price Futures implied annual yield? Intermediate Problems 3-4 20-3 What is the implied interest rate on a Government of Canada bund (S1000 F attract the settled at 112.757 If interest rates increased by 15, what would be the new value? 20-4 Branger Lid, has the choice of issuing floating-rate debt at LIBOR - 15 or fixed-rate debt Swops Likewise, Creeson Plastics can issue floating-rate debitat LIBOR + 2 Ore debt at 7.7%. Suppose Branger issues fixed-rate debt and Creeson issues floating-rate debt The two companies are considering a swap where Branger will make LIBOR payments to Creeson in exchange for a fixed rate payment of 5.1%. What are the net payments or ranger and Creeson if they engage in the swap? Is it better for Branger to issue fixed-rate debt and enter into the swap or to issue floating-rate debt is it better for Creeson to issue noting rate debt and to enter into the swap or issue fixed-rate debt? What decision would each company Challenging make if the fixed-rate payment on the swap was 5.997 Problems 5-7