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