You plan to take out a 9 month loan of $12mm in 6 months. The following schedule reports interest rates across different maturities: Maturity 3 months 6 months 9 months 12 months 15 months 18 months 21 months Interest Rate 2% 2.5% 3% 3.75% 5% 7% 10% What is the forward rate that you can lock in?
You plan to take out a 9 month loan of $12mm in 6 months. The following schedule reports interest rates across different maturities: Maturity 3 months 6 months 9 months 12 months 15 months 18 months 21 months Interest Rate 2% 2.5% 3% 3.75% 5% 7% 10% What is the forward rate that you can lock in?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
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- You plan to take out a 9 month loan of $12mm in 6 months. The following schedule reports interest rates across different maturities:
Maturity |
3 months |
6 months |
9 months |
12 months |
15 months |
18 months |
21 months |
Interest Rate |
2% |
2.5% |
3% |
3.75% |
5% |
7% |
10% |
What is the forward rate that you can lock in?
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