Swap Calculator

1. To begin, assume that it is now January 1, 1993, and that each bond in Table 1 matures on December 31 of the year listed. Further, assumes that each bond has $1,000 par value, each had a 30-year maturity when it was issued, and the bonds currently have a 10 percent required nominal rate or return.

AND AMORTIZATION 100% 16 CALCULATING INTEREST

The market for swap exists since it allows parties to access market which they might not be able to do directly. Also swaps are customizable between parties and so are more flexible. The duration of

1. A condo in Orange Beach, Alabama, listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

.To find out what this amount is, you subtract line 5 from line 4, and enter this amount on line 6.

Numbering for figure 1: $0 to $600 on the y-axis, in $100 increments. Months July, August, and September on the x-axis. Legend on the bottom.

Figure 1. Time- series scatter plot of the balance still remaining on a loan taken out at a 15% interest rate with a monthly payment of $369.42.

If a person looks at the horizontal analysis it will give more information. There are two different ways to do a formula for this. The first would be using the current year and subtract from the base year. The second formula you would divide the current year amount from the base amount.

3. Exhibit 7 applied an 11% inflation rate to every single financial line throughout the

Next, the terminal value at year ten was calculated. The following formula was used to do so: terminal value at year 10 = (FCF at year 11)/(WACC - g). This time we used the long-term growth rate of 7up, which was given by the case as 1% less than the industry rate. This resulted in a terminal value of $848M with its present value calculation being $231M.

This will also be found in the loan payment table; I may also obtain this from my mortgage lender.

Swaps give flexibility and allow the bank to design the contracts in a way that fits its needs. Banks can tailor the durations, rates and other terms of the swap contracts and make it specific to the current situation of the bank. Furthermore, they can easily communicate with other banks in order to construct contracts, which benefit both sides.

Calculations to estimate the following years 5 and 6 are done in the excel tab called ‘Estimation Years 5 and 6’. Taking into account that the predicted remaining

In this case, to get the present value (PV), we can use the formula of growing annuity.

First we need to get the present value of the annuity for the 1,500 semiannual PMTs at year 14