Here is the synopsis of our sample research paper on Financial Markets Questions; Interest Rates, Currency Swaps and Derivatives. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 9 page paper answers a number of questions regarding financial markets. The first considers short-term and long-term interest rates and considers how comparing can indicate the way that the market believes interest rates will move. The paper then discusses the use of interest rate swaps and looks at the importance of the swap network. The last part of the paper discusses the different tools that can be used by an investor including forward contracts, options and hedging. The bibliography cites 10 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEfinquest11.rtf
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Unformatted sample text from the term paper:
2008, the rate for the 10 year treasury constant maturity rate is 3.74% in January 2008(Economagic, 2008). There will usually be a differential between the short and the long term
interest rates that are offered. The long term rates reflect the general direction that interest rates are expected to move, the long term rates also hold a degree of compensation
for the term that money is tied up (Howells and Bain, 2004). Therefore with long term rate higher than the short term rates there is a general expectation in
the market that the rates are going to increase. Interest Rate Swap A swap is as it sounds; a swap. The
parties to the contract agreed to swap different types of payments; the way the payments are calculated in a swap is undertaken with the use of a prearranged formula. With
the interest rate swap each part due to the contract will agree to make a payment, in either a floating or a fixed-rate which is denominated in a specific currency,
and the other party to the contract. The floating or the fixed rate will be multiplied by a specific multiplier based on a notional amount which is used only for
the calculation on the amount is to be exchanged (Dattatreya et al, 1993). The most frequently used interest-rate swap is where one party
will pay a fixed rate, which is a swap rate, at the same time as receiving a floating rate which is likely to be pegged to LIBOR (Ludwig, 1993).
Looking at the situation with the interest rates if the borrower want to minimize their payments they may use a swap and pay
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