Six months ago, Thomas Group entered a one-year interest rate swap with its bank,paying fixed and receiving floating every quarter, according to the 3-month rate withnominal amount of $10 million. Following is the rates information when swap wasentered, the rates information three months ago, and the rates information today. Notethat all rates are annual and quarterly compounding. Keep at least 6 decimal pointsduring your calculation.3-month6-month9-month12-monthSix Months Ago3.50%3.80%4.00%4.00%Three Months Ago3.80%4.00%4.50%4.80%Now4.80%4.80%5.00%5.20%a. What are the amounts of money Thomas Group received or paid over past sixmonths?b. What is the current market value of the interest rate swap Thomas Group isholding?

a. To calculate the amounts of money Thomas Group received or paid over the past six months, we need…

fixed and receiving floating every quarter, according to the 3-month rate al amount of $10 million. Following is the rates information when swap v d, the rates information three months ago, and the rates information to I rates are annual and quarterly compounding. Keep at least 6 decimal po your calculation.

fixed and receiving floating every quarter, according to the 3-month rate al amount of $10 million. Following is the rates information when swap v d, the rates information three months ago, and the rates information to I rates are annual and quarterly compounding. Keep at least 6 decimal po your calculation.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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$2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in 7-months from now, and a final payment in 19-months from now. What is the BALANCE(amount owing) of the loan BEFORE the following payments if the interest rate on the loan is 14% compounded monthly? Today in 7 months in 19 months $ $ $ (Round All Answers to 2 Decimals)
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