Accounting Assignment | Custom Assignment Help

Bank A is rated AAA and so it can get financing at a fixed interest rate of 6%. However, the Bank wants fund itself at a floating interest rate to compensate the floating interest rate changes of its loan portfolio. In this case, the interest rate of the financing would be at Libor + 0,25%. On the other side, company B rated BBB, may find a floating rate loan at Libor + 0,75%. For this company, what it would really be attractive was to get a fixed rate loan to eliminate the interest rate risk. Given its low rating, the best offer the company has it is 7,5%. How can we structure a IRS that may benefit both parties in terms of financial cost and accomplish the goals of both (Bank A will get a floating interest rate, meanwhile company B will get a fixed interest rate)?

Don't use plagiarized sources. Get Your Assignment on
Accounting Assignment | Custom Assignment Help
Just from $13/Page
Order Now

Custom Assignment Help

in the solution Bank A pays libor to an investment bank and receives 6,3% while company B pays 6,4% and receives libor…

how do you get to these numbers??

same kind of exercise : Alcoa has just made a $10 million issue (face value) of floating rate bonds on which it pays an interest rate 1% over the Libor rate. The bonds are selling at par value. Alcoa is worried that rates are about to rise, and it would like to lock in a fixed interest rate on its borrowings. Alcoa sees that dealers in the swap market are offering swaps of Libor for 7%. a. What interest rate swap will convert the firm’s interest obligation into one resembling a fixed-rate loan? b. What interest rate will the firm pay with the interest rate swap

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.


Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.


Admission and Business Papers

With, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.


Editing and Proofreading has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.


Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.