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SashulF [63]
3 years ago
10

Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a FIXED rate. B wants to finance

a $100,000,000 project at a FLOATING rate. Both firms want the same maturity, 5 years.
Fim Fixed Rate Floating
A $10.3% Prime + 1%
B $8.900 Prime +4%
Construct a mutually beneficial INTEREST ONLY swap that makes money for A, B, and the swap bank IN EQUAL MEASURE.

Business
1 answer:
QveST [7]3 years ago
4 0

Answer:

party A will pay floating rate while party B will pay fixed rate

Explanation:

For A

Sources at floating rate = prime 1%

received fixed rate = 8.9%

For B

sources fixed rate = 8.9%

Received floating rate = prime 1%

For a mutually beneficial interest only swap that makes money for A,Band the swap bank in equal measure, the party A will pay floating rate while party B will pay fixed rate

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Which of the following is not an important question for economic policy raised by the experience of the textile industry? A. How
sweet [91]

Answer:

C) Which argument for restricting free trade is politically feasible?

Explanation:

Foreign trade and globalization are here and there is nothing any country can do to stop it. As a country, you either engage in foreign trade or face with the possibility of becoming the next North Korea.

We can argue the benefits of foreign trade or how can we increase them, but the fact that foreign trade exists and cannot be stopped is something that not even President Trump could avoid.  

7 0
3 years ago
Vulcan Materials stock price soared in the days following the election of President Trump. Vulcan's products, such as asphalt an
aev [14]

Answer:

<h2>Spending on infrastructure projects is an example of <u>Discretionary Fiscal Policy</u> aimed at increasing real GDP and employment.</h2>

Explanation:

  • A discretionary fiscal policy basically refers to the manipulation or adjustment of various fiscal instruments by the government such as public taxes and government spending.
  • The aim of discretionary fiscal policy is to adjust the overall macroeconomic condition in any country based on the existing or current situation or scenario.
  • Now,infrastructural spending is part of fiscal policy or instrument to adjust the macroeconomic condition of the country as reflected by necessary modification in the GDP and employment level.Hence, higher infrastructural spending by the government would expectedly increase the residential and commercial construction projects in the country thereby,enhancing the GDP and the employment level in the country and boost the overall economy.
8 0
3 years ago
Suppose a state lottery prize of $8 million is to be paid in 5 payments of $1,600,000 each at the end of each of the next 5 year
slavikrds [6]

Answer:

The answer is $5767641.92

Explanation:

PV of an Annuity = C x [ (1 – (1+i)-n) / i ]

PV of an Annuity = $1,600,000  x [ (1 – (1+0.12)-5) /0.12 ] = $5767641.92

The present value of the prize is $5767641.92

7 0
4 years ago
:- How might U.S. pharmaceutical companies and U.S. consumers benefit from the rise of the Indian pharmaceutical industry?
lesantik [10]

Answer:

Due to the rise of the India's pharmaceutical industry the US pharmaceutical companies benefit by the increase in volume of sales due to the low costs of imports.

The U.S. consumers benefited from rise in Indian pharmaceutical industries, because of lower cost medications, insurance, copays as well as out of pocket expenses and greater financial flexibility that offers pharmaceuticals developed at lower research and development (R&D) cost.

Explanation:

Due to the rise of the India's pharmaceutical industry the US pharmaceutical companies benefit by the increase in volume of sales due to the low costs of imports.

The U.S. consumers benefited from rise in Indian pharmaceutical industries, because of lower cost medications, insurance, copays as well as out of pocket expenses and greater financial flexibility that offers pharmaceuticals developed at lower research and development (R&D) cost.

The U.S. pharmaceutical companies have major benefits from India because the people from India see others inputs instead of the goals for themselves and America is seen as an individualistic culture and there is lower power distance in America due to the fact that everyone is created equal which is why within America, people often to seek their own personal goals instead of the good of others.

Furthermore America is more concerned about self while India seeks to help the world globally which is why two different counties have to adapt to policies and procedures to respect exporting trade rights and this policy is known as the World Trade Organization.

6 0
3 years ago
Now- a quick question. Assume at the beginning of Year2, Becker Company has a credit (positive) balance in the AOCI account of $
castortr0y [4]

Answer:

Becker Company

The amount that Becker will report as Accumulated Other Comprehensive Income on the Year 2 balance sheet is:

= $22,800.

Explanation:

a) Data and Calculations:

Year 2 Beginning balance:

Accumulated other comprehensive income (AOCI) = $10,800 credit

Year 2 reported net income = $653,000

Unrealized gain during Year 2 = $12,000

The Accumulated Other Comprehensive Income on the Year 2 balance sheet is:

Beginning balance $10,800

Unrealized gain        12,000

AOCI for Year 2 = $22,800

b) Becker's Accumulated Other Comprehensive Income includes unrealized gains and losses arising from some investments, pension plans, and hedging transactions.  These are usually reported in the equity section of the balance sheet and then netted off from the retained earnings.

7 0
3 years ago
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