Prepare the general journal entries to account for this swap agreement.

1.A Ltd owns 100 000 shares in B Ltd. The current price of B Ltd shares is $4.80. The terms

 

under which A Ltd acquired the shares in B Ltd means that it will have to wait one month

before it is able to sell the shares in B Ltd. To avoid the effects of market volatility, A Ltd

enters into a futures contract on B Ltd shares in which A Ltd takes a sell position. The price

of a B Ltd future is $4.85 and the futures contract is for 100 000 units.

One month later the price of B Ltd shares has risen to $6.05, and a B Ltd future costs

$6.15. A Ltd closes out the futures contract and sells the shares.

Required

How much does A Ltd ultimately receive from these transactions?
2. Company ZZZ has issued $200 000 of fixed-interest securities for three years at an interest rate of 12% per annum. The company signs an interest rate swap agreement with Bank

AA on 1 July 2016. At the inception of the agreement, the variable rate is 12% per annum.

The relevant market rates of interest during the swap period are as follows:

Required

Prepare the general journal entries to account for this swap agreement. (LO10)

 

find the cost of your paper

erive the differential equations in terms of the liquid heights h1 and h2.

  Figure 7.18 shows a liquid-level system in which two tanks have cross-sectional areas A1 and A2, respectively. The volume flow rate into tank 1 is qi. A pump is connected to the bottom….

Derive the differential equation relating the liquid height h and the volume flow rate qi at the inlet.

  Consider the single-tank liquid-level system shown in Figure 7.19, where the volume flow rate into the tank through a pipe is qi. The liquid leaves the tank through an orifice….

Derive the differential equations in terms of the liquid heights h1 and h2.

Figure 7.20 shows a hydraulic system of two interconnected tanks that have the same cross-sectional area of A. A pump is connected to tank 1. Assume that the relationship between the….