Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
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
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. 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 using Westonci.ca. Come back for more in-depth answers to all your queries.
