The fixed rate on an FRA expiring in 30 days on 180-day LIBOR with the 30-day rate being 5percent and the 210-day rate being 6 percent is how much? Show work and discuss result.
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- The fixed rate on an FRA expiring in 30 days on 180-day LIBOR with the 30-day rate being 5percent and the 210-day rate being 6 percent is how much? Show work and discuss result.
- Who uses FRA’s primarily and why?
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- Show work and discuss result after Finding the approximate market value of a long position in an FRA at a fixed rate of 5 percent in which the contract expires in 20 days, the underlying is 180-day LIBOR, the notional principal is $25 million, the 20-day rate is 7 percent, and the 200-day rate is 8.5 percent1) Determine the rate on a 6x9 FRA if the current 6-month LIBOR rate is 1.36% and the 9-month LIBOR rate is 1.58%. Use a day count of 182 for the 6-month period and of 91 for the three-month period after that.What is the equivalent annual cost in years 1 through 11 of a contract that has a first cost of $79,000 in year 0 and annual costs of $18,000 in years 3 through 11? Use an interest rate of 11% per year. The equivalent annual cost is determined to be $
- Suppose a party wanted to enter into an FRA that expires in 42 days and is based on 137-day LIBOR. The dealer quotes a 4.75 percent rate on this FRA. Assume that at expiration the 137-day LIBOR is 4 percent and the notional principal is $ 20,000,000. Calculate the FRA payout for a long position.A leasing contract calls for an immediate payment of $100,000 and nine subsequent $100,000semiannual payments at six month intervals. What is the PV of these payments if the annual discount rateis 8 percent? do not use excelSuppose that a party wanted to enter an FRA that expires in 121 days and is based on 55-day LIBOR. The dealer quotes a rate of 0.049 on the FRA. Assume that at expiration, the 55-day LIBOR is 0.029, and the notional amount is USD10,000,000. What is the payoff of the FRA short position?
- A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at the end of each 8 periods as long as necessary, with a final smaller payment of 8 periods after the last 1200 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will ve the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance. Show your solution, dont use excelA debt of 4,400 with interest at 2.5% payable semi annually will be discharged by payment of 600 at the end of each 7 periods as long as necessary, with a final smaller payment of 7 periods after the last 600 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will Be the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance. Show the solution.An investor takes a long position on an FRA that is based on 90-day LIBOR and has 6 months till expiration. The FRA rate equals 5%. LIBOR-90 at various dates are given below: Today : 5% After 3 months: 5.5% After 6 months: 6% After 9 months: 6.5% After 1 year: 7% The payoff on the FRA to the investor assuming that the notional principal equals $1m is closest to: A. $9,433.96 B. $2,463.05 C. $2,500
- You have taken alone of $500000 lone over 12years at 6% intrest rate compounded monthly, which is rembursed with montly payment. What is the principal portion of the 23rd payment. Choose correct alternative from given imageA loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)The payments required on a contractual obligation are $800 per month. The contract was purchased for $9,250 just before a regular payment date. The purchaser determined this price based on a required rate of return of 4.3% compounded monthly. How many payments will be required, include the partial final payment? 12 payments 24 payments 9 payments 6 payments 18 payments