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Swap

Nnaina7y ago
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
John MoffatJohn MoffatTutor7y ago#1
Yes, it is fine. As I say in the lecture, there are many. ways of actually settling up the swap.
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