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Jet001 [13]
3 years ago
7

Company A, a British manufacturer, wishes to borrow US dollars at a fixed rate of interest. Company B, a US multinational, wishe

s to borrow sterling at a fixed rate of interest. They have been quoted the following rates per annum ( adjusted for differential tax effects):
Sterling US dollars
Company A 11.0% 7.0%
Company B 10.6% 6.2%
Design a swap that will net a bank, acting as intermediary, 10 basis points per annum and that will produce a gain of 15 basis points per annum for each of the two companies.
Business
1 answer:
Sever21 [200]3 years ago
7 0

Answer:

Company b 11.0 % 7.o%

Explanation:

Is this ok

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If the bank offers an effective annual rate of 4%, how long will it take for $500 to grow to $1,000?
scoray [572]
It will take 25 months to get $500
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3 years ago
Which of the following statement is false?
lara31 [8.8K]

Answer:

C) Coupon bonds always trade for a discount.

Explanation:

"A coupon bond, also referred to as a bearer bond or bond coupon, is a debt obligation with coupons attached that represent semiannual interest payments. With coupon bonds, there are no records of the purchaser kept by the issuer; the purchaser's name is also not printed on any kind of certificate. Bondholders receive these coupons during the period between the issuance of the bond and the maturity of the bond." Trade them for a discount is not a common characteristic of coupon bonds.

Reference: Chen, James. “Coupon Bond.” Investopedia, Investopedia, 18 Sept. 2019

5 0
4 years ago
Read 2 more answers
Blossom Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 470 pounds of a spice mixture at $2.35 per p
Sveta_85 [38]

Answer:

No gain or loss.

Explanation:

Given:

Amount of spice mixture = 470 pound

Current price = $2.35 per pound

Future price = $2.73 per pound

Computation:

We know that, Future price of spice mixture is higher than current price of spices.

But contract price is fixed at $2.35.

Therefore, no gain or loss will be recognized.

7 0
4 years ago
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Why do we record Direct deposits into the CPJ
Oksi-84 [34.3K]

Explanation:

Because those payments are done for creditors, repayment of loans and other expenses

6 0
2 years ago
One thing that distinguishes the short run and the long run is?
Andrej [43]

A. the existence of at least one fixed input is the primary difference between short run and long run. It is because in the long run, the quantities of all inputs can be varied.

In economics, the short run can be defined as a concept that states that, within a certain period in the future. In the short run the others are variable while at least one input is fixed. In the other side, long run in economics can be defined as a theoretical concept in which all prices and quantities have fully adjusted and all markets are in equilibrium.

Learn more about long run here brainly.com/question/17029465

#SPJ4

6 0
2 years ago
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