Corporate Finance Assignment/ Professional Essay Writers
May 8th, 2020
Heather O’Reilly, the treasurer of CB Solutions, believes interest rates are going to fall, so she wants to swap her future fixed-rate interest payments for floating rates. At present, she is paying fixed payments of 7.00% per annum on $5,000,000 of debt for the next two years, with payments due semiannually. Ms. O’Reilly has just made an interest payment today, so the next payment is due six months from today. LIBOR is currently 4.00% per annum. If LIBOR falls at the rate of 25 basis points per annum period, starting tomorrow, how much does Ms. O’Reilly save or cost her company by making this swap? Get Finance Help Today
Don't use plagiarized sources. Get Your Assignment on
Corporate Finance Assignment/ Professional Essay Writers
Just from $13/Page