Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Finance


Home >> Basic Finance

1. Explain the difference between the credit risk and the market risk in a financial contract.

2. A corporate treasurer tells you that he has just negotiated a 5-year loan at a competitive fixed rate of interest of 5.2%. The treasurer explains that he achieved the 5.2% rate by borrowing at 6-month LIBOR plus 150 basis points and swapping LIBOR for 3.7%. He goes on to say that this was possible because his company has a comparative advantage in the floating-rate market. What has the treasurer overlooked?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91991876

Have any Question?


Related Questions in Basic Finance

Average inventory is 415435 and cost of goods sold is

Average inventory is $415,435 and cost of goods sold is $1,410,000. On average, how long did a unit of inventory sit on the shelf before it was sold?

You have inherited an apple orchard and want to sell it in

You have inherited an apple orchard and want to sell it in the next four years. An expert in apple orchard valuation has estimated the after-tax cash flow you would receive if you sold at the end of each of the next four ...

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Is there a way to protect and secured the file with a

Is there a way to protect and secured the file with a password, checked compatibility, and removed inappropriate information on Powerpoint?

If i have all of the information is someone willing to

If I have all of the information, is someone willing to figure out ratios for me and provide the steps? I have two assignments that I want to get done today. I just do not have the patience to figure out how to plug the ...

Question - sports and leisure - the daytona 500 often

Question - Sports and Leisure - The Daytona 500, often referred to as The Great American Race, is a spectacular sporting event, complete with a pre-race show. Jimmie Johnson won this race in 2013, when the mean speed per ...

Cowcor copr makes yummy cheeseburgers and fries it has 16

COWCOR COPR makes yummy cheeseburgers and fries. It has $1.6 million in debt outstanding, equity valued at $2.3 million, and pays corporate income tac at a 39% rate. Its cost f equity is 13% and its cost of debt is 5%. A ...

What is the relation between a corporate bonds expected

What is the relation between a corporate bond's expected return and the yield to maturity? definition of default risk and explanation of how these rates incorporate default risk.

London purchased a piece of real estate last year for 81000

London purchased a piece of real estate last year for 81,000. the real estate is now worth 103,100. if London needs to have a total return of 0.24 during the year, then what is the dollar amount of income that she needed ...

Your cousin is currentlynbsp10nbspyears old she will be

Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $90,000 in a savings account to fund her education at that time. If the account promises to pay a fix ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved