This case provides pupils with the opportunity to assess effectiveness and the mechanisms of an interest rate swap in a real situation. Rothmans Inc. entered into an interest rate swap in 2001, and the firm's public financial statements enable readers to follow the swap through several years until the ultimate early pay off in 2005.
Pupils may ascertain whether the decision to exit the interest rate swap was good or bad. Rothmans has just one five-year bank term loan and one interest rate swap covering half of the value of the loan. This simplicity provides an excellent learning environment using data that is freely available.
Rothmans Inc. - The Curious Case of the Interest Rate Swap case study solution
PUBLICATION DATE: August 28, 2012 PRODUCT #: W12164-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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