You have issued a term loan to a borrower at 4% for 4 years on $25m. They are ecstatic because they (and you) believe interest rates will go up in that 4-year period, but you needed to do the loan because you want the customer’s business. To save your Spread, you decide to buy a $25m notional principal interest rate swap for 4% Fixed to receive SOFR+2%. Assume SOFR for the next 4 years are expected to be 4.25%, 4.75%, 5.5% and 6%, respectively. Required:
Generate a 4-year Cash Flow table detailing what the customer pays, what you will pay in the swap, what you will receive in the swap, and show why you have converted their fixed payments into floating receipts.

Steffi is reviewing various licenses and their uses. match the licenses to their respective uses. you are eligible to work within the state. you are eligible to sell limited investment securities. you are eligible to sell fixed income investment products. your compensation is fee based. section 6 section 7 section 63 section 65

What is the sequence of events that could lead to trade surplus

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?