Variants of basic interest rate and currency swaps
Discuss briefly some of the variants of the basic interest rate and currency swaps.
Expert
Rather than the basic fixed-for-floating interest rate swap, there are as well zero-coupon-for-floating rate swaps where fixed rate payer makes only one zero-coupon payment at the time of maturity on notional value. There exist floating-for-floating rate swaps where each side is tied to the different floating rate index or a dissimilar frequency of the same index. Currency swaps is not required to be fixed-for-fixed; floating-for-floating and fixed-for-floating rate currency swaps are repeatedly arranged. Additionally, both currency and interest rate swaps can be non-amortizing as well as amortizing.
Give me answer of this question. The prime interest rate usually: A) rises when the Federal funds rate rises. B) rises when the discount rate falls. C) falls when the Federal funds rate rises. D) falls when the Fed sells bonds in the open market
how much money do i have to earn monthly?
Why cash is so important? Illustrate it.
Atypically large proceeds made by an individual or company from commercial activity. An abnormal profit exceeds the normal chance for profit derived from labor costs and capital and considered normal profit. Abnormal profit in a business resides of monopoly and consortium profits.
Why it would be useful to examine a balance of payments of the country data?
Q : European Monetary System Discuss the Discuss the workings and arrangements of European Monetary System (EMS).
Discuss the workings and arrangements of European Monetary System (EMS).
Specify the basic motivations for the counterparty to enter into the currency swap.
Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate
Explain the term Insolvent in brief associating to debt?
18,76,764
1959196 Asked
3,689
Active Tutors
1442606
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!