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NEW QUESTION: 1
H has a floating rate loan that it wishes to replace with a fixed rate. The cost of the existing loan is LIBOR + 4%. H would have to pay a fixed rate of 8% on a fixed rate loan. H's bank has found a potential counterparty for a swap arrangement.
The counterparty wishes to raise a variable rate loan. It would pay LIBOR + 1% on a variable rate loan and 9% on a fixed rate.
The bank will require 10% of the savings from the swap and H and the counterparty will share the remaining saving equally.
Calculate H's effective rate of interest from this swap arrangement.
A. H would pay 6.2%
B. H would pay 6%
C. H would pay 6.4%
D. H would pay Libor + 1%
Answer: A
NEW QUESTION: 2
The portfolio is undergoing and your are now in the monitoring and controlling phase. Two of your team members are arguing about what to use in order to determine decisions to be made with regards to the portfolio and its components. What should be your advice to them?
A. They should conduct review meetings on need basis
B. They should use the elicitation techniques to get as much data as possible on the progress in order to be able to take decisions
C. They should conduct review meetings on formal and scheduled basis
D. They should conduct review meetings on scheduled and informal basis
Answer: C
NEW QUESTION: 3
Which of the following is true of the in-depth interview method?
A. In-depth interviews are relatively less time consuming.
B. The results of in-depth interviews can be used to develop surveys.
C. The results of in-depth interviews can be used to make quick changes to the product roll.
D. In-depth interviews cannot be used to establish an historical context.
E. In-depth interviews can be used for sentiment mining.
Answer: B