Answer:
c. $8.63
Explanation:
Missing word <em>"The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88
, B. $9.12
, C. $8.63
, D. $9.02"</em>
Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum
The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.
Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)
= (0.045 - 0.035) * 1000
= $10
Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period
= 10 / [1+(0.06/2)]^(30/6)
= $8.6261
= $8.63
Answer:
Marketing
Explanation:
There are various explanations for the term Marketing. It is essentially a group of activities aimed at creating a valuable customer relationship. Unlike traditional approaches which planned their activities based on what the customers would buy, the Marketing approach takes decisions based on wht the customer wants/needs. It places customer at the center and all the activities revolve around them.
You don’t ask to be born but are expected to do everything asked of you
Answer:
Consider the following explanations
Explanation:
Q1.) the short run fluctuations in the real GDp is known as the business cycles.
Q2.)yes , it is true that Short-term fluctuations in real GDP are irregular and unpredictable.
Q3.) A decrease in real GDPcoincide with declining personal income, and falling corporate profits. As incomes decline consumer spending also decline on retail goods and services and on durable goods, such asautomobiles. Households also contribute to declining investment expenditures by purchasing fewernew homes. As households spend less on products, firms cut back on industrial production and curbinvestment expenditures on physical capital.The unemployment rate tends to rise during periods of falling real GDP as firms cut back on productionand lay off workers. The unemployment rate tends to fall during economic expansions as firms expands production and hire additional workers.
We will be participating in (A) rights offer if you opt to purchase the shares you have been offered.
<h3>
What is Rights Offering?</h3>
- A rights offering (rights issue) is a set of rights granted to existing shareholders to purchase more stock shares in proportion to their existing holdings, known as subscription warrants.
- These are considered a sort of option since they enable stockholders of a firm the right, but not the responsibility, to purchase more shares in the company.
- The subscription price at which each share may be purchased in a rights offering is often discounted relative to the current market price.
- Rights are frequently transferrable, giving the possessor the ability to sell them on the open market.
- Each shareholder in a rights offering receives the opportunity to purchase a pro-rata allotment of extra shares at a certain price and within a specific time frame (usually 16 to 30 days).
Therefore, we will be participating in (A) rights offer if you opt to purchase the shares you have been offered.
Know more about Rights Offering here:
brainly.com/question/17232098
#SPJ4
The complete question is given below:
Currently, you own 5.4 percent of the outstanding stock of Keiffer Industries. The firm has decided to issue additional shares of stock and has given you the first option to purchase 5.4 percent of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?
A. Rights offer
B. Red herring offer
C. Private placement
D. IPO
E. General cash offer
