Receiving floating in US dollars and paying fixed in Euros on a currency swap is equivalent to

The owner of a bond has a position that is equivalent to:

ABC Inc can borrow 7 years fixed funds at 7.00% and floating funds for 7 years at Libor + 25 basis points. XYZ Corporation can borrow in the fixed rate market for 7 years at 7.50% and floating for 7 years at Libor + 40 basis points. If ABC Inc. has a target floating rate borrowing level of Libor plus 5 basis points, how much can XYZ save on the fixed rate funding by entering into an interest rate swap with ABC Inc.?

You have entered into an equity swap where you will receive the total return on the S&P 500 index each six months. The first period of the swap covers October 1, 2001 through April 1, 2002. If the beginning index level is 1200, the final index level is 1300, the dividend yield on the S&P 500 index is 1.5% (on a 360 day basis), the six month dollar LIBOR rate is 5%, and the notional size is $100million, determine the net cash flow to you the investor on April 1, 2002. Answers are rounded to nearest $10

ABC Inc can borrow in the fixed rate interest market at 10% and can borrow floating at Libor + 20BP. XYZ Inc can borrow in the fixed rate market at 11% and can borrow floating at Libor + 50BP. If ABC Inc has a floating rate borrowing target of Libor – 20BP, how much can XYZ save on fixed rate funding by entering into an interest rate swap with ABC?

You observe the following zero curve in the market

Period 1 5.00%
Period 2 5.25%
Period 3 5.50%

What interest rate would you quote if you were asked for a quote to receive fixed for three periods.

ou are told that the par swap interest rates (fixed vs LIBOR) are:

1-YEAR 5%
2-YEAR 5.25%
3-YEAR 5.50%

What is the market implied three year zero (or spot) rate of interest.

Estimate the fair fixed rate on a three year swap given the following set of forward interest rates.

0/1 Year 10% 1/2 Year 11% 2/3 Year 12.25%