- This topic has 6 replies, 5 voices, and was last updated Jan-182:15 pm by
.
-
Posts
-
-
Up9
Haspiess Systems, Inc. and Signicomp Manufacturing enter into a netted interest rate swap, with a notional $75M. Haspiess will pay a fixed 5%, and Signicomp will pay LIBOR + 75bp. LIBOR is 3.5%. The first semiannual payment will be closest to:
- Haspiess paying Signicomp $600,000
- Signicomp paying Haspiess $600,000
- Haspiess paying Signicomp $300,000
-
Up6
The amount Haspiess owes is 0.5 * $75,000,000 * 5% = $1,875,000.
The amount Signicomp owes is 0.5 * $75,000,000 * (3.5% + 0.75%) = $1,593,750.
The netted payment will be Haspiess paying Signicomp $281,250. -
Up4
if only the exam was color coded to highlight key words…wishful thinking haha. but i definitely agree. a lot of my mistakes stem from the fact i dont take the time to properly read the question
-
Up4
Woo! I got it right. 🙂
-
Up3
missed the semiannual part. i guess that’s kind of important…. >.<
-
Up0
@simply_complex2‌ that’s what I feel is 80% of the reason of wrong answers when I take an exam. Its not like I don’t get it, but the question often makes things so convoluted that its so easy to miss/confuse things. So far no remedy found except to keep practicing…
-
Up0
In the KS books, words like ‘most likely’ or ‘least likely’ are usually in Italic. Does help.
-
- You must be logged in to reply to this topic.