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
Debora [2.8K]
2 years ago
13

Credit Derivative. In a total return swap, Party A receives LIBOR 3%. Party B receives the total return on a certain equity inde

x on a principal of $100,000. Suppose at swap maturity LIBOR is 5% and the index return is 6%. According to the swap, how much should Party A pay and receive
Business
1 answer:
dusya [7]2 years ago
5 0

Based on the provisions of the swap, Party A will pay $6,000 and receive $8,000.

<h3>How much will Party A pay?</h3>

Party A will pay the total return of 6% on the equity index capital:

= 6% x 100,000

= $6,000

<h3>How much will Party A receive?</h3>

Party A is to receive the rate of LIBOR + 3%. LIBOR is 5% so Party A will receive:

= 5% + 3%

= 8%

Total return is:

= 8% x 100,000

= $8,000

In conclusion, Party A will pay $6,000 and receive $8,000.

Find out more on LIBOR at brainly.com/question/26033099.

You might be interested in
What is authenticity in the often-used framework of quality criteria?
Sergio [31]
<span>What is authenticity in the often-used framework of quality criteria? This framework is made up of credibility, dependability, confirmability, transferability and authenticity. Authenticity shows how researchers family and faithfully show different reality possibilities. Authenticity will show in how participants act, feel and speak and what is depicted of them. </span>
4 0
3 years ago
The executives of the company need you to present on a new skateboard project which will be manufactured either in-house or in a
Effectus [21]

Explanation:

In this case, we see that the product's life cycle is in the introduction phase.

This is the first phase, where the initial phase of the product's life occurs, it is the phase where a new product will be launched on the market, so in this phase the ideal is to have a market segmentation, which occurs in the identification of a group of people with similar product responses and preferences, in order to find the ideal target audience for the new product to be launched and direct the advertising strategy and product features to that potential audience.

5 0
3 years ago
on june 30, the company lends it chief financial officer $44,000; principal and interest 7% are due in on one year. what journal
julsineya [31]
A because only real one
8 0
1 year ago
Consider the circular flow model to answer the questions that follow.
Zarrin [17]

Answer:

The answer is :

A. Resource market - income

B. Expenditure - product market.

Explanation:

A. Resource market - income

B. Expenditure - product market

The circular flow model shows how money moves through the economy in exchange for goods, services, and resources.

A.

In circular flow of income, households provide inputs to firms through the resource market(matket where households supply land, labor, capital, and entrepreneurship) in exchange for money(income or wages).

B.

Also in circular flow of income, firms receives expenditure from household and this type of market is called product market(which refers to a place where goods and services are bought and sold)

6 0
2 years ago
Explain the holistic marketing dimensions in details using the examples of ‘Nestle Bangladesh
Marysya12 [62]
Drinking from a fresh water bottle in dimensions
7 0
3 years ago
Other questions:
  • The ruhr valley is important to the economy of germany because it ____.
    6·1 answer
  • Which of the following would most likely constitute a negative externality affecting free resources?
    15·1 answer
  • A period of very low inflation would most likely lead to
    11·2 answers
  • A performance obligation​ is: A. An enforceable promise in a contract with a customer to transfer a good or service to the custo
    9·2 answers
  • Scott Equipment produces​ high-quality soccer balls. If the fixed cost per ball is $ 3 when the company produces 15 comma 000 ​b
    14·1 answer
  • Choose two occupations one that pays high wages and one that pays low wages. explain the reasons of the differences
    10·1 answer
  • Green Manufacturing Company produces a product that has a variable cost of $30 per unit. Fixed costs amount to $240,000. The sel
    15·1 answer
  • Suppose the price of a substitute to lcd televisions rises. What effect will this have on the market equilibrium for lcd​ tvs? T
    7·1 answer
  • After researching products similar to yours in the industry, you decide that your product has superior value. As such, you decid
    5·1 answer
  • What type of loan requires you to pay the interest accumulated during college
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!