Your firm is faced with paying a variable rate debt obligation with the expectation that interest rates are likely to go up. Identify two strategies using interest rate futures and interest rate swaps that could reduce the risk to the firm
What will be an ideal response?
Answer: Sell a futures position. If rates change the payoff from the futures position offsets the gain or loss on the variable rate debt obligation. Swap a variable rate debt obligation for a fixed futures payable contract.
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In the _______________style, the leader follows the will of the people, or at least the majority of the people, with decisions often being made through voting.
a. laissez-faire b. authoritative c. democratic d. none of the above
Explain the buyer's right to specific performance when the seller breaches a contract for the sale of goods.
What will be an ideal response?
According to the text, what is the most important factor for developing and reinforcing a high-integrity work culture?
a. hiring ethical job applicants b. engaging in workforce-wide ethics training c. establishing a written code of ethics d. setting examples through the behavior of the CEO and upper management
Match the following elements of a business plan with their descriptions.
a. Executive summary. Choose... i) Sets out practical aspects of the venture including key processes, information systems, assets (e.g. premises, technologies), and controls. ii) Sets out what venture aims to provide, why there is a demand and who is involved in the process (e.g. customers, suppliers, partners). iii) Outlines the key features of the venture and may highlight relevant points such as funding required, growth potential and returns for investors. iv) Analyses potential market and competition, summarizes marketing mix and explains how products and services will be promoted. b. The business opportunity. Choose... i) Sets out practical aspects of the venture including key processes, information systems, assets (e.g. premises, technologies), and controls. ii) Sets out what venture aims to provide, why there is a demand and who is involved in the process (e.g. customers, suppliers, partners). iii) Outlines the key features of the venture and may highlight relevant points such as funding required, growth potential and returns for investors. iv) Analyses potential market and competition, summarizes marketing mix and explains how products and services will be promoted. c. Marketing and promotional strategy. Choose... i) Sets out practical aspects of the venture including key processes, information systems, assets (e.g. premises, technologies), and controls. ii) Sets out what venture aims to provide, why there is a demand and who is involved in the process (e.g. customers, suppliers, partners). iii) Outlines the key features of the venture and may highlight relevant points such as funding required, growth potential and returns for investors. iv) Analyses potential market and competition, summarizes marketing mix and explains how products and services will be promoted. d. Operational strategy. Choose... i) Sets out practical aspects of the venture including key processes, information systems, assets (e.g. premises, technologies), and controls. ii) Sets out what venture aims to provide, why there is a demand and who is involved in the process (e.g. customers, suppliers, partners). iii) Outlines the key features of the venture and may highlight relevant points such as funding required, growth potential and returns for investors. iv) Analyses potential market and competition, summarizes marketing mix and explains how products and services will be promoted.