| 10. Agrawal Telecom is considering issuing $10,000,000 of 6.75% fixed-coupon bonds to finance an expansion. Alternatively, Agrawal could borrow the funds in the Eurodollar market using a series of six-month LIBOR contracts. A swap contract matching the maturity of the 6.75% coupon bonds is available. The swap uses six-month LIBOR as the floating-rate component. Identify the interest rate swap that Agrawal should use to convert the Eurodollar borrowing to the equivalent of issuing fixed-income bonds. A. Agrawal would use a pay-fixed, receive-floating interest rate swap. B. Agrawal would use a pay-floating, receive-fixed interest rate swap. C. Agrawal would use a total return equity payer swaption to evaluate the two borrowing options. 题目中提供两种融资办法，可是没有明白为什么正确答案是A。 谢谢老师 |
发表于 2013-9-17 01:12
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