Cost of Financing Assignment | Homework For You
Fixed Rate Floating Rate
Company A 5.50% LIBOR + 1.05%
Company B 6.75% LIBOR + 1.75%
Assuming comparative advantage and the agreed upon rate of 6.45%, after entering into an interest rate swap determine the cost of financing for Company A and Company B. Who are the main users of interest swaps and currency swaps?
6. A U.S. investor purchased stock in Toyota, the rate of return on the stock in yen was 8.65% and the yen appreciated by 2.34%, determine the exact total return to the investor. Get Finance homework help today