Business, 30.03.2021 03:20, dozsyerra

Microsoft issues a four year, floating-rate bond for the amount of $100 Million. It pays annually to bondholders. Because Microsoft would prefer to have a fixed rate payment, it enters into a SWAP with Citibank. Year LIBOR (%) Fixed-Rate payments to Citibank Floating-Rate payments from Citibank Net payment to Citibank Payment to bondholders Net payment by Microsoft 1 4 4 2 3 2 5 5 1 4 3 6 6 0 5 4 7 7 -1 6 a) Explain the conditions of this SWAP b) Which is the final fixed rate that Microsoft has to pay?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:00, szinx

Abank provides its customers mobile applications that significantly simplify traditional banking activities. for example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. this unique service demonstrates the bank’s desire to practice which one of porter’s strategies?

Answers: 3

continue

Business, 22.06.2019 19:50, leannamat2106

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)

Answers: 2

continue

Business, 22.06.2019 21:50, preguntassimples

Assume that (i) setups need to be completed first; (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at a resource before any of the units of the batch can be moved to the next resource. process step 1 molding 2 painting 3 dressing setup time 15 min. 30 min. no setup processing time 0.25 min./unit 0.15 min./unit 0.30 min./unit which batch size would minimize inventory without decreasing the process capacity?

Answers: 1

continue

Business, 22.06.2019 23:00, infoneetusinghoyg22o

To increase sales, robert sends out a newsletter to his customers each month, letting them know about new products and ways in which to use them. in order to protect his customers' privacy, he uses this field when addressing his e-mail. attach bcc forward to

Answers: 2

continue

Do you know the correct answer?

Microsoft issues a four year, floating-rate bond for the amount of $100 Million. It pays annually to...