Consider a 6 month OIS Notional Price = INR 200 Fixed Rate = 7.5% Floating Rate = NSE Overnight MIBOR Under the structure of the swap, the Fixed Rate is nominal rate, MIBOR is compounded daily (on holidays the previous MIBOR is taken) Consider 182 days in the period of SWAP, 365 days in a year MIBOR remains constant for the entire period at 6.90% What is the amt to be exchanged at the end? Answer is INR 0.479 (Can you show the calculation for it)
Great video!! Short and quick!
excellent video. could you make a video on options?
Yes, I have videos on options.
What happens if B defaults on the floating rate payments? Shouldn't that hurt A's credit rating?
It hurts the credit rating of B, the party that defaults. It hurts A's profitability, though.
Very helpful!!!
Consider a 6 month OIS
Notional Price = INR 200
Fixed Rate = 7.5%
Floating Rate = NSE Overnight MIBOR
Under the structure of the swap, the Fixed Rate is nominal rate,
MIBOR is compounded daily (on holidays the previous MIBOR is taken)
Consider 182 days in the period of SWAP, 365 days in a year
MIBOR remains constant for the entire period at 6.90%
What is the amt to be exchanged at the end?
Answer is INR 0.479 (Can you show the calculation for it)
why A choose fixed rate , not B???
thx u so much