An Equity Swap with Fixed Interest Payments Has Two Payments

question 42

Multiple Choice

An equity swap with fixed interest payments has two payments remaining.The first occurs in 30 days and the second occurs in 210 days.The discount factors are 0.9934 (30 days) and 0.9528 (210 days) .The upcoming fixed payment is at 4 percent and is based 180 days in a 360-day year.The equity index was at 1150 at the beginning of the period and is now at 1152.75.The notional amount is $60 million.Find the approximate value of the equity swap from the perspective of the party making the equity payment and receiving the fixed payment.

• A)$143,478
• B)$642,000
• C)-$143,478
• D)-$642,000
• E)-$496,560

Understand the concept and calculation of direct materials quantity variance.

Recognize different types of standards (ideal, normal, currently attainable).

Understand the computation of direct labor rate and time variances.

Understand the concept and interpretation of variance analysis in cost accounting.

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The process of examining something in detail in order to understand it better or to draw conclusions from it.

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The process of collecting data or facts from various sources to understand a subject or solve a problem.

Informational

Designed to provide facts, data, or knowledge about a specific topic or subject, without necessarily persuading or influencing the reader.

Analytical

Pertaining to the systematic examination of components or structure; characterized by the ability to break down complex information into smaller parts for better understanding.