Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
The cash flows associated with the swap now: 98.75 x 10,000,000 = Y987,500,000. The cash flows associated with the swap 2 months later (with promise to buy $ back): 98.69 x 10,000,000 = Y986,900,000.
What is cash flow swap?
The cash flows or liabilities from two separate financial instruments are exchanged between two parties through a derivative contract known as a swap. Almost any type of instrument can be used in a swap, but they typically entail cash flows based on a notional principal amount, such as a loan or bond. Typically, the principal is not transferred. The first cash flow is typically constant, but the second is variable and dependent on a benchmark interest rate, a floating currency exchange rate, or an index price.
Interest rate swaps are the most prevalent sort of swap. Swaps are not traded on exchanges, and retail investors often avoid them. Instead, swaps are over-the-counter (OTC) agreements that are made specifically for business or financial institutions and are based on the demands of both parties.
To learn more about cash flow visit:
https://brainly.com/question/28238360
#SPJ4
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.
