Q15

Question 15 6 pts Calculate the effective yields for each 90 day period for a borrower who issues $10,000,000 face value worth of 90 day bank bills in June and hedges its interest rate risk with a 180 day interest rate swap with a swap rate of 4.5% p.a. The 90 day bank bill swap rate at the time of issue of the first bill is 4% p.a. and 3.75% at the time of issue of the second bill in September