Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please, explain thw answer. a bank enters into a

Please, explain thw answer. A bank enters into a 3-year swap with company X...

70.2K

Verified Solution

Question

Accounting

image

Please, explain thw answer.

A bank enters into a 3-year swap with company X where it pays LIBOR and receives 3%. Bank also enters into an offsetting swap with company Y where it receives LIBOR and pays 2.95%. Which of the following is true? If company X defaults, the swap with company Y is null and void. If company X defaults, the bank will be able to replace company X at no cost. If company X defaults, the swap with company Y continues. The bank's bid-offer spread is 0.5 basis points None of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The nature of the business of Next PLC and relevant information of the industry. (500 words) This...

Finance
Q

Norman Inc. wishes to accept a new project which has a NPV of US$98,000. A sum...

Finance
Q

Consider the following information regarding the performance of a money manager in a recent month. The...

Finance
Q

The following data show the rate constant of a reaction measured at several different temperatures. Temperature...

Chemistry
Q

Why do you think the topic of Early Human migration to America is controversial for archaeologists?

Biology
Q

. A jeep is traveling on a straight road and it leaves a junction at time...

Physics
Q

The line with the equation in the xy plane What is the y coordinate of...

Geometry
Q

Find the average rate of change of f(x)=2x +2 over each of the following intervals.(a)...

Basic Math
Q

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for...

Accounting
Q

16. Which of the following is a true statement? A. All business expenses are deducted...

Accounting
Q

Below is a series of cost of goods sold sections for Wildhorse Inc, Blossom Co,...

Accounting
Q

1. 1000 points value Fellar Corp. has identified the following information Activity cost pools Materials...

Accounting