Question
What is the present value of $1,750,000 paid on April 5, 2023 valued at the swap curve? What is the present value of the same
What is the present value of $1,750,000 paid on April 5, 2023 valued at the swap curve? What is the present value of the same cash flow valued at swaps + 0.50%?
3-month Libor: 2.5815%;6-month Libor: 2.8165%; 1-yr swap: 2.915%; 3/6 basis swap for 6 months: -8.8 bps
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To find the present value of the cash flow we need to use the discount factors from the swap curve ...
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Step: 2
Step: 3
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
