Question
You have a 3-year $20 million loan for which you pay 3-month BBSW plus 2% margin and the next rate setting is in 2 months
You have a 3-year $20 million loan for which you pay 3-month BBSW plus 2% margin and the next rate setting is in 2 months time. The Reserve Bank has indicated they are considering the tightening of monetary policy in which case the company will:
Select one:
A.
do nothing
B.
buy a 2/5 FRA
C.
sell a 2/5 FRA
D.
buy a 2/3 forward rate agreement (FRA)
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
