 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
fair value and classification
Assume an interest swap with a notional value of $1,000,000.
Firm receives fixed and pays variable. The fixed rate on Dec. 31 2003 = 8% The swap swap has 2 yrs w/ a variable rate of interest of 7.8% in 2004 and 7.6% in 2005 respectively. There were annual settlements only. The firm's discount rate is 8%. I need to know how to calculate the fair value of the derivative and wheterh it should be an asset or liability on the balance sheet. Also, assume the swap occrred prior to Dec. 2003 and the interest rate swap contract had a debit balance of $1000. Under this circumstance I need to calculate the fair value and make the entry for the fair value as of Dec. 2003. |
||||
Check out some similar questions!
Classification of Assets
[ 1 Answers ]
How do we classify money market accounts, Short term investments and cash on the balance sheet?
Classification of Accounts
[ 1 Answers ]
What are they classified as? Wages payable(2 weeks), accum. Depr-equp. unearned rent(1 mth), interest receivable(3 mths), accum depr.-furniture,prepaid ins.(4 mth)withdrawls, supplies, salaries payable(1 mth), copyright, and unearned service fees(2 mths) ...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
