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Swap

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Swap

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 28, 2018 at 10:50 pm #469921
    adurich
    Member
    • Topics: 127
    • Replies: 120
    • ☆☆☆

    Keshi qs Dec 2014 and Q’s 61 in bpp

    I tried to solve swap part for keshi following your video

    Is it ok

    Keshi fix 5.5%. And floating L+0.4
    Counterparty fix 4.6% and floating L+30

    Own borrow or if no swap
    Keshi fix 5.5%
    Counterparty L+30
    Total L+5.8

    Swap
    Keshi L+0.4
    Cp 4.6%

    Total 5%
    Gain 0.8%

    Keshi takes 70 percent of gain
    So net is 5.5-70% 0f o.8======4.94%
    Counterparty(cp) L+0.30 -0.24===L+0.06

    The revision kit writes in different format ..and is it all right ? And if I do this way in exam

    August 29, 2018 at 8:45 am #469959
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54774
    • ☆☆☆☆☆

    Yes, it is fine. As I say in the lecture, there are many. ways of actually settling up the swap.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Swap’ is closed to new replies.

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