Answer:
The loss of the financial institution is $413,000
Explanation:
Let's say that after 3 years the financial institution will receive:
0.5 * 10% of $10million
= 0.5 * 0.1 * 10000000
= $500,000
Then, they will pay 0.5 * 9% of $10M
= 0.5 * 0.09 * 10000000
= $450,000
Therefore, their immediate loss would be $500000 - $450000
= $50000.
Let's assume that forward rates are realized to value the rest of the swap.
The forward rates = 8% per annum.
Therefore, the remaining cash flows are assumed that floating payment is
0.5*0.08*10000000 =
$400,000
Received net payment would be:
500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:
Year 3=$50,000
Year 3.5=$100,000
Year 4 = $100,000
Year 4.5= $100,000
Year 5 = $100,000
Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000
Answer:
Option E is correct.
All of the above
Explanation:
This is an example of political risk since The current political party in Maharashtra-Shiv sena intervened and used Enron for its selfish interests. When US department of energy issued a statement that cancelling Enron could endanger other private FDI from USA, the same was again used to further its selfish interests. Finally Maharashtra renegotiated its contract with Enron.
Answer:
B. =PV(.06,10,0,10000)
Explanation:
In MS Excel the formula of Present value re is as "=PV( rate, nper, pmt, [fv] )".
PV = Present value
rate = Interest rate= 6% = 0.06
nper = number of periods = 10
pmt = payment made each period = 0 in this scenario
fv = future value = 10,000
So, according to the formula the correct sequence is =PV(.06,10,0,10000)
which is correctly mentioned in option B.
In comparing the relationship between the promotional mix and the Aida model, marketers have generally concluded that advertising they are most useful for drawing attention to your products and services.
In the advertising mix and the AIDA model, the main relationship of advertising is to get the customer's attention, and AIDA also stands for Attention, Interest, Desire, and Behavior, which is intended to be used in marketing and advertising. I mean The AIDA model represents the four phases that a consumer goes through before making a purchase decision.
The AIDA model, which stands for Attention, Interest, Desire, and Behavior Model, is an advertising effectiveness model that identifies the stages people go through in the process of purchasing a product or service.
Learn more about the Aida model at
brainly.com/question/27333732
#SPJ4
Answer:
The need for organisations (which may be governmental or non-governmental) to improve the condition of living of people and protect their environment whilst they pursue increased profitability has been termed
The Triple Bottomline.
It is also referred to by economists as the 3P - People, Planet and Profit.
It speaks to the fact that other than the usual making financial success the sole metric of measurement by which organisations are evaluated, their impact on people and the environment should be considered as well.
In simple terms, a firm should be termed more successful than others if it's activities besides being profitable also impacts positively on people and protects if not improves the environment.
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