An innovative financial services provider is fighting to get a fixed interest (or SWAP) rate that its clients need. The customer's new project would take five years to reach its capacity, at which time, debt repayments would start. Thus, the client needed to lock in interest rates for the first 10 years of the project.
The financial services supplier planned to begin with the zero coupon rate bond yield curve, analyzing various points along the curve to arrive at a cost. (The teaching note for this instance is made up of PowerPoint presentation. A Microsoft Excel spreadsheet is also available to be used with this case, merchandise 7A99N034.)
Publication Date: 02/09/2000
This is just an excerpt. This case is about Finance
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