- 1、本文档共5页,可阅读全部内容。
- 2、有哪些信誉好的足球投注网站(book118)网站文档一经付费(服务费),不意味着购买了该文档的版权,仅供个人/单位学习、研究之用,不得用于商业用途,未经授权,严禁复制、发行、汇编、翻译或者网络传播等,侵权必究。
- 3、本站所有内容均由合作方或网友上传,本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺!文档内容仅供研究参考,付费前请自行鉴别。如您付费,意味着您自己接受本站规则且自行承担风险,本站不退款、不进行额外附加服务;查看《如何避免下载的几个坑》。如果您已付费下载过本站文档,您可以点击 这里二次下载。
- 4、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等,请点击“版权申诉”(推荐),也可以打举报电话:400-050-0827(电话支持时间:9:00-18:30)。
- 5、该文档为VIP文档,如果想要下载,成为VIP会员后,下载免费。
- 6、成为VIP后,下载本文档将扣除1次下载权益。下载后,不支持退款、换文档。如有疑问请联系我们。
- 7、成为VIP后,您将拥有八大权益,权益包括:VIP文档下载权益、阅读免打扰、文档格式转换、高级专利检索、专属身份标志、高级客服、多端互通、版权登记。
- 8、VIP文档为合作方或网友上传,每下载1次, 网站将根据用户上传文档的质量评分、类型等,对文档贡献者给予高额补贴、流量扶持。如果你也想贡献VIP文档。上传文档
查看更多
CHAPTER 14 INTEREST RATE AND CURRENCY SWAPS
SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER
QUESTIONS AND PROBLEMS
QUESTIONS
1. Describe the difference between a swap broker and a swap dealer.
Answer: A swap broker arranges a swap between two counterparties for a fee without
taking a risk position in the swap. A swap dealer is a market maker of swaps and assumes a
risk position in matching opposite sides of a swap and in assuring that each counterparty
fulfills its contractual obligation to the other.
2. What is the necessary condition for a fixed-for-floating interest rate swap to be possible?
Answer: For a fixed-for-floating interest rate swap to be possible it is necessary for a quality
spread differential to exist. In general, the default-risk premium of the fixed-rate debt will
be larger than the default-risk premium of the floating-rate debt.
3. Discuss the basic motivations for a counterparty to enter into a currency swap.
Answer: One basic reason for a counterparty to enter into a currency swap is to exploit the
comparative advantage of the other in obtaining debt financing at a lower interest rate than
could be obtained on its own. A second basic reason is to lock in long-term exchange rates
in the repayment of debt service obligations denominated in a foreign currency.
4. How does the theory of comparative advantage relate to the currency swap market?
Answer: Name recognition is extremely important in the international bond market.
Without it, even a creditworthy corporation will find itself paying a higher interest rate for
foreign denominated funds than a local borrower of equivalent creditworthiness.
Consequently, two firms of equivalent creditworthiness can each exploit their, respective,
name
文档评论(0)