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2 years ago

A swap that involves the exchange of one set of interest payments for another set of interest payments is called a(n)?

1 answer:

4 0

A swap that involves the exchange of one set of interest payments for another set of interest payments is called a(n) interest rate swap.

An interest rate swap is a futures contract that exchanges a future interest payment stream for another payment stream based on a specified principal amount. Interest rate swaps typically exchange fixed interest rates for floating interest rates or vice versa to reduce or increase exposure to interest rate fluctuations or to obtain slightly lower interest rates than would have been possible without the swap. accompanied.

Swaps also involve exchanging one type of floating rate for another, known as a basis swap. An interest rate swap is a futures contract that exchanges a future interest payment stream for another payment stream based on a specified principal amount.

Interest rate swaps may exchange fixed or floating interest rates to reduce or increase exposure to interest rate fluctuations. Interest rate swaps are sometimes called plain vanilla swaps because they are the original swap product and often the simplest swap product.

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Colleges offer two-year programs that enable students to obtain an associate degree

Hitman42 [59]

Answer: i believe this is true

Explanation:

6 0

3 years ago

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.

Mama L [17]

Answer:

Please see answers below

Explanation:

1. Prepare an income statement for the year ended, December 31, 2021

Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.

Details

Service revenue

500,000

Salaries expense

400,000)

Rent expense

20,000)

Depreciation expense

40,000)

Interest expense

5,000)

Earnings for the year

35,000

2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021

Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.

Details

Common stock

300,000

Retained earnings

60,000

Earnings for the year

35,000

Stockholder equity

395,000

3. Prepare a classified balance sheet as at 31, December

Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.

Details

Fixed assets

Equipment

400,000

Accumulated depreciation

135,000

Net fixed assets

265,000

Current assets

Cash

12,000

Accounts receivables

150,000

Prepaid rent

6,000

Supplies

30,000

Total current assets

198,000

Current liabilities

Accounts payable

($12,000)

Salaries payable

(11,000)

Interest payable

(5,000)

Working capital

170,000

Long term liabilities

Notes payable (due in two years)

(40,000)

Net total assets

395,000

Financed by;

Common stock

300,000

Retained earnings

60,000

Earnings for the year

35,000

Stockholder equity

395,000

4 0

4 years ago

The demand and supply curves are given by q=110−2p and q=3p−50, respectively; the equilibrium price is $32 and the equilibrium q

DaniilM [7]

Answer:

The Demand is given by $q^d=110-2p^d(1.07)$
The supply curve is by $q^s=3p^s-50$

Consumers will face a price of 33.29 and the equilibrium quantity will be 43.42.

These results illustrate that as a consequence of the tax, the price faced by consumers will be higher, quantity sold be lower, and producers will receive less for their product sale.

Explanation:

The Demand is given by $q^d=110-2p^d$
The supply curve is by $q^s=3p^s-50$

In the absence of taxes $p^s=p^d$ and $q^s=q^d$ .

An ad-valorem tax $t=0.07$ generates now that

$p^s=p^d(1+t)$

So the new equilibrium is

$110-2p(1.07)=3p-50$

$110+50=5.14p$

$p^s=31.12$

$p^d=33.29$

Replacing in the demand equation we get the equilibrium quantity

$q=43.42$

4 0

3 years ago

How free maket economy operates

Leokris [45]

Exibindo resultados para How free market economy operates

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In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services.

6 0

4 years ago

Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table s

gavmur [86]

Answer:

a. 42.5%, 34.4%, 34.21%, 30.63%

b. Option D

The question in proper order

Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives,

The table is inserted below

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

a. Calculate the coefficient of variation for each alternative.

b. If the firm wishes to minimize risk, which alternative do you recommend? Why?

Explanation:

Coefficient of Variation = Standard Deviation/Expected Return * 100%

Standard

Expected deviation Coefficient of

Alternative return of return variation

A 20% 8.5% 42.5%

B 25% 8.6% 34.4%

C 19% 6.6% 34.21%

D 16% 4.9% 30.63%

(b)

Coefficient of Variation, CV, denotes the risk per unit of return. This implies that a low CV means a low risk per unit of return. Hence, the firm can minimize risk by opting for option D which gives the lowest CV and therefore offers the lowest risk

5 0

3 years ago