Come Up with a Swap (Principal + Interest)for Two Parties $\begin{array}{lcl} & € & \$ \\\mathrm{~A}& \$ LIBOR \%&\$ 8 \% \\\mathrm{~B} &\$ \mathrm{LIBOR}+1 / 2 \%& \$8.20 \% \end{array}$

question 74

Essay

Come up with a swap (principal + interest)for two parties A and B who have the following borrowing opportunities.


$\begin{array}{lcl} & € & \$ \\\mathrm{~A}& \$ LIBOR \%&\$ 8 \% \\\mathrm{~B} &\$ \mathrm{LIBOR}+1 / 2 \%& \$8.20 \% \end{array}$ The current exchange rate is $1.60 = €1.00.Company "A" wishes to borrow $1,000,000 for 5 years and "B" wants to borrow €625,000 for 5 years.You are a swap dealer.Quote A and B a swap that makes money for all parties and eliminates exchange rate risk for both A and B.Firms A and B are more concerned with what currency that they borrow in than whether the debt is fixed or floating.

Understand the various delivery channels and their categorization under technology-based training.

Recognize the advantages and disadvantages of technology-based training methods, including computer-based training and electronic performance support systems.

Identify the elements of learner control in training environments.

Distinguish between synchronous and asynchronous training methods and their suitability for different learning needs.

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Definitions:

Debt Securities

Financial instruments indicating a debt owed by the issuer to the holder, typically in the form of bonds, bills, or notes.

Available-for-sale Securities

Financial assets not classified as held-to-maturity or trading securities, and can be sold in the market.

Significant Influence

The capacity to affect the operating and financial decisions of another entity, typically through ownership of a substantial share of its stock.

Voting Stock

Shares that give the shareholder voting rights in the corporation's matters, typically related to the election of the board of directors.