I'm from Chennai. SFM got postponed for us to 17th. Can anyone help and give the ABC analysis or important qns for SFM? I gotta cover it in the evening of IDT exam. Pls help.
Thanks..
Lakshmi MG (6 Points)
12 November 2017
Gourav Gupta
(Working in CA Firm)
(671 Points)
Replied 12 November 2017
Divakar
(Student CA Final )
(11857 Points)
Replied 12 November 2017
Kushal
(Kolkata)
(25 Points)
Replied 17 January 2018
Please provide the solution to this problem:
Companies A and B have been offered the following rates per annum on a $20million five year loan:
Fixed Rate Floating Rate
Company A 12.0% LIBOR+0.1%
Company B 12.5% LIBOR+0.6%
Company A requires a Floating rate loan and company B requires a fixed rate loan. Design a swap that will net a bank acting as an intermediary, 0.1% per annum and will be equally attractive to both companies. If company B is offered 13.4% instead of 12.5% fixed, how does your answer change?
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