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mafiozo [28]
3 years ago
13

VANILLA SWAPS Cleveland Insurance Company has just negotiated a three-year plain vanilla swap in which it will exchange fixed pa

yments of 8 percent for floating payments of LIBOR plus 1 percent. The notional principal is $50 million. LIBOR is expected to be 7 percent, 9 percent, and 10 percent (respectively) at the end of each of the next three years. Determine the net dollar amount to be received (or paid) by Cleveland each year. Determine the dollar amount to be received (or paid) by the counterparty on this interest rate swap each year based on the assumed forecasts of LIBOR.
Business
1 answer:
Rus_ich [418]3 years ago
6 0

Answer: Check attachment

Explanation:

a. Determine the net dollar amount to be received (or paid) by Cleveland each year.

The the net dollar amount to be received by Cleveland for:

Year 1: = $0

Year 2 = $1,000,000

Year 3: = $1,500,000

b. Determine the dollar amount to be received (or paid) by the counterparty on this interest rate swap each year based on the assumed forecasts of LIBOR.

Check the attachment for further details.

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Answer:

true, defiantily true

Explanation:

if this helps can i have brainliest when u get the chance...thnx

5 0
3 years ago
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At the beginning of Year 1, a company reported a balance in common stock of $164,000 and a balance in retained earnings of $64,0
blagie [28]

Answer:

Explanation:

The preparation of the statement of stockholder equity and balance sheet is presented below:

a. Statement of stockholder equity

<u>Particulars            Common stock         Retained earnings      Total stock equity</u>

Beg balance        $150000                   $50,000                      $200,000

Add: Addi shares  $40,000                                                       $40,000

Add: Net income                                    $30,000                     $30,000

Less: dividend                                         -$10000                     -$10000

Total                     $190,000                 $70,000                    $260,000

b. Balance sheet

Assets                          Amount                    

Cash                               $52,600                  

Supplies                         $13,400                

Prepaid rent                   $24,000                    

Land                               $200,000    

Total assets                   $290,000          

Liabilities       Amount

Account payable $9,100

Un-earned revenue $2,400

Salaries payable $3,500

Notes payable      $15,000

 Stockholder equity $260,000

Total liabilities & stockholder equity $290,000

6 0
3 years ago
About 13 to 16 guests out of every 100 are purposefully out to scam us and get something for free.
antoniya [11.8K]

Answer:

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2% out of 100 guest purposefully scam.

3 0
4 years ago
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hile giving her students a physics exam, Professor Thompson noticed that Jack, one of her students who has been struggling with
vlada-n [284]

Answer: Gathering information

Explanation: Ethical decision making involves evaluating and choosing among different options in a way that is consistent with ethical principles. The best way to do this is to eliminate the unethical choices and choose the best alternative option.

There are various steps involved in this process. These are listed below:

1. Gather info

2. Define the ethical problem

3. Identify the parties that are affected

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8. Implement the decision

Professor Thompson has decided to wait until the class period ends, take both tests and compare their answers. After that she will decide what to do about the situation. Professor Thompson has thus entered the first step, which is to gather information. She doesn't want to jump to conclusions without gathering all the facts, so she is going to acquire as much info as she can about the situation before continuing. All these points add to the fact that Professor Thompson is entering the first step towards making the best ethical decision.

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ehidna [41]

Answer:

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8 0
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