Question
Spread = 98.5*(6.5%/5.78%)-102.58/100 The above formula is used to calculate the interest rate paid by Procter & Gamble on the 5/30 swap a.Assuming a 6.5%
Spread = 98.5*(6.5%/5.78%)-102.58/100
The above formula is used to calculate the interest rate paid by Procter & Gamble on the 5/30 swap
a.Assuming a 6.5% interest rate on CP and a 6% yield to maturity on the 30-year Treasury bond (equivalent to a price of $102.58): how do you calculate the equivalent price of $102.58 on the 30 year treasury bond?
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Re Imagining Offshore Finance
Authors: Christopher M. Bruner
1st Edition
0190466871, 978-0190466879
