XYZ Corp owns a 3-year $10 million par floating rate bond. The coupons on the bond are 12-month LIBOR. XYZ would like to hedge against interest rates falling by entering into an interest rate swap with a $10 million notional that receives a fixed rate and pays a floating rate (12-month LIBOR). You are given the following prices for zero coupon bonds.

Years of Maturity Zero Coupon Bond Price
1 0.99
2 0.97
3 0.93

Calculate the fixed rate XYZ Corp would receive on the swap.
a. 2.4%
b. 2.7%
c. 3-2%
d. 3-8%
e. 4.5%

Visburg concrete company pours concrete slabs for single-family dwellings. lancing construction company, which operates outside visburg's normal sales territory, asks visburg to pour 40 slabs for lancing's new development of homes. visburg has the capacity to build 300 slabs and is presently working on 250 of them. lancing is willing to pay only $3, 300 per slab. visburg estimates the cost of a typical job to include unit-level materials, $1, 440: unit-level labor, $720: and an allocated portion of facility-level overhead, $1, 200. required calculate the contribution to profit from the special order. should visburg accept or reject the special order to pour 40 slabs for $3, 300 each?

What is the difference between secure bonds and naked bonds?

In a team environment, a coordinator is? a person with expert knowledge or skills in a particular area the team needs. a good listener who works to resolve social problems among teammates. a leader who team members focus on their tasks. a good networker who likes to explore new ideas and possiblities.