1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iris [78.8K]
3 years ago
14

An equivalent description of the holding of a receive-floating pay-fixed swap is as follows: A. An exchange of a long position i

n a fixed-rate bond for a short position in a floating-rate note. B. A portfolio of long positions in forward-rate agreements (FRAs) for each swap payment date, all at the same fixed rate as the swap. C. All of the above. D. A bond that pays the fixed rate minus the floating rate each period.
Business
1 answer:
serious [3.7K]3 years ago
4 0

Answer:

The correct answer is

A)  An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.

Explanation:

Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.

Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.

It is important to note that the capital remains unmodified.

Cheers

You might be interested in
Wayne was a bona fide resident of Brazil for all of 2018 and 2019. He reports his income on the cash basis. In 2018, he was paid
Dmitrij [34]

Answer:

the answer is b

Explanation:

3 0
3 years ago
Amazon's start of rapid delivery services in some U.S. cities is an example of which type of strategy?
Natasha_Volkova [10]

Answer:

??????????????????????????

6 0
3 years ago
Read 2 more answers
Why do you think the 4 components of media measurement are important?
Blizzard [7]

Answer:

audience, impression, frequency, and cost per thousand (CPM) 3.

Reach””The number or percent of different homes or persons exposed at least once to an advertising schedule in one or more media vehicles over a given period of time.

Frequency””The average number of times that the household or person is exposed to a media vehicle, schedule or campaign over a given time period.

3 0
3 years ago
"The Bank of England is concerned that the British Pound is weakening against the U.S. Dollar. A method for the Bank of England
sukhopar [10]

Complete/Correct Question:

The Bank of England is concerned that the British Pound is weakening against the U.S. Dollar. A method for the Bank of England to strengthen its currency would be to:

A. raise British interest rate levels

B. lower British interest rate levels

C. raise U.S. interest rate levels

D. lower U.S. interest rate levels

Answer:

A, raise British interest rate levels

Explanation:

Increasing the interest rate levels of the British will help strengthen the pound against the Dollar. This would mean that the United States is offering lower interest rate.

This is possible because a higher interest rate means that lenders will make higher returns compared to countries with lower interest rates.

Cheers.  

8 0
3 years ago
An explanation for the slope of the LM curve is that as:
adoni [48]

Answer:

The correct answer is letter "C": Income rises, money demand rises, and a higher interest rate is required .

Explanation:

The Liquidity Preference-Money Supply (<em>LM</em>) shows the relationship between real output and interest rates. According to this approach, the slope of the LM is positive when an increase in interest rates pushes the increase in income. The money supply and demand must be equal for that purpose which implies the demand for money will have to increase as well. Thus, for the LM curve to be positive the interest rates, income, and demand for money must be higher.

5 0
3 years ago
Other questions:
  • Here is a question for you to practice your intuition... imagine a deluge in the city versus the forest. why does urbanization (
    14·1 answer
  • Why private limited companies in malaysia does not get listed in the stock exchange?​
    14·1 answer
  • The key to setting a price for a product is finding an approximate price level to use as a reasonable starting point. Four commo
    8·1 answer
  • The production supervisor at Elmwood Foods is known for being unduly critical of his subordinates' work performance. Which of th
    13·1 answer
  • Bob's Warehouse has a pre-tax cost of debt of 8.4 percent and an unlevered cost of capital of 14.6 percent. The firm's tax rate
    15·1 answer
  • The supply chain includes a. suppliers and suppliers' suppliers. b. all entities that facilitate product distribution. c. suppli
    7·1 answer
  • You bought Sumsung stock for $50 on April 1. The stock paid a dividend of $5 on July 1, and had a price of $53. It is now Oct. 1
    7·1 answer
  • What are the quantitative and qualitative techniques available to help planning
    15·1 answer
  • Why is 10 cents earned far more valuable than a dollar found. Critical thinking.
    10·1 answer
  • In the ________, the perfectly competitive firm will react to profits by ________
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!