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Piglets1228
27.10.2020 •
Business
The one-year LIBOR rate is 3% and the forward rate for the one- to two-year period is 3.2%. The three-year swap rate for a swap with annual payments is 3.2%. What is the LIBOR forward rate for the 2 to 3 year period if OIS zero rates for one, two, and three year maturities are 2.5%, 2.7%, and 2.9%, respectively
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Ответ:
$2.27 million
Explanation:
Calculation for What is the value of a three-year swap where 4% is received and LIBOR is paid on a principal of $100 million
First step is to calculate the value of the first
exchange
Value of the first exchange=0.032-0.030/1.025
Value of the first exchange=0.002/1.025
Value of the first exchange=0.001951
Second step is to calculate the value of the second exchange
Value of the second exchange=0.032-0.032/1.027^2
Value of the Second exchange=0.00
Third step is to calculate the value of the third exchange
Value of the third exchange=0.032-R/1.029^3
0.032-R/1.029^3=-0.001951
Hence R=0.0034126
In a situation where a swap of 4% is been received on a principal amount of $100 million
it will either provides 0.8% of $100 million or
the amount of $800,000 per year more than a swap that is worth zero which means that Its value be calculated as :
Value of the swap =800,000/1.025+800,000/1.027^2+800,000/1.029^3
Value of the swap =780,487.80+758,488.67+734,249.84
Value of the swap =$2,273,226.32
Value of the swap=$2.27 million
Therefore the valueof a three-year swap where 4% is received and LIBOR is paid on a principal of $100 million will be $2.27 million
Ответ:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead= $3,251,600
Estimated machine-hours= 739,000
During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 3,251,600/739,000
Predetermined manufacturing overhead rate= $4.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 4.4*734,000= $3,229,600
Finally, we can determine the total cost and unitary cost:
Total cost= 1,640,000 + 5,335,800 + 3,229,600= $10,205,400
Unitary cost= 10,205,400/2,190,000= $4.66 per unit